Top performing Cities

Despite a barrage of tax changes making it harder to make money on buy-to-let, there are still pockets of the market where investing can be very profitable.

A recent report on buy-to-let yields available across major towns and cities in the UK found that Liverpool and Nottingham are now the UK’s best performing property investment locations.

According to the research, both cities enjoy average rental yields of 6.2% once mortgage costs are taken into account. Liverpool has retained its top position since May 2017, although the city has seen rental yields compress due to falling rental prices.

In third position is Cardiff, with average yields of 6% after the average rent paid in the city rose from £946 to £1,301 over the past three months.

Significantly, London and the South East are absent from the top 10, as high purchase costs have put a severe dampener on yields. Rents in the capital have also been coming down, as renters appear to have maxed out what they can afford to pay each month.

Fixed rate mortgages are now proving to be better value than the tracker type plans, particularly for lower loan-to-value borrowers. Low loan-to-value mortgages are now proving better value than their tracker equivalents at 2, 3 and 5-year periods.

A recent survey of investors showed they are looking to the long term and wanting to know the outgoings will be fixed, thus giving stability.

Due to the vast range of mortgage products available it is important to get professional independent advice as a wrong move could cost thousands extra in interest payments.

If you require help with your buy-to-let mortgage, please do call and one of our advisers will be happy to help.