If you’re looking for details on the current buy to let market then, hopefully the following information will point you in the right direction.
There is no denying that, the buy to let market has suffered since the global economic collapse of the banking and financial sectors in 2008. Things have remained stagnant for the past four years, but there may be signs that, things might be improving with year on year figures showing slight growth in particular areas.
What’s new in the Buy to Let Mortgage deals?
- HMO Lending still available
- Buy to Let mortgages for applicants without proof of income available
- 80% mortgage deals available (although we would suggest 75% as the deals are not always as good as they advertise)
- Student lets and Multi lets available
- Multiple flats on one legal title available
- And much, much more…
- Ltd company buy to let still available
What are the recent buy to let figures?
New quarterly figures for the buy to let market in 2012 show that, nearly £4 billion pounds has been borrowed from the banks and financial lending institutions against these type of property purchases which equates to over 32,000 different loans. This is down by approximately 5% from the last quarter of 2011, but is a vast improvement on the same period last year with an increase of over 30%.
Statistical figures should that the average amount borrowed against the property price for buy to let mortgages remains at approximately 75% with the average rental cover in excess of 125% of the property payments and has been roughly at the same level for the past three to four years according to the Council of Mortgage Lenders (CML).
What does the future hold?
…in relation to buy to let mortgage availability
The worst is probably well behind us now aside from the threat of the dreaded ‘double dip’ in the UK and despite the difficulties in the eurozone with countries like Greece, Ireland and Portugal having to be bailed out by other financially healthier economies.
With there being continued pressure from the government and in particular the Chancellor of the Exchequer George Osborne for the banks to get the lending wheel in the UK turning again, the future for the property and buy to let markets should get better in 2013 and beyond.
At The Mortgage Broker we feel that the buy to let market will keep opening up in terms of new lenders and easier criteria due to the fact that the lenders see better profits and margins on buy to let deals in comparison to the residential mortgage deals they are currently offering.
The banks have a duty of care to give full consideration to every buy to let applicant and that is the message that politicians and most other people are trying to convey, as most of the main banks were bailed out by the UK taxpayers money.