BTL mortgage products soar in popularity
Predictions of a decline in the housing market appear to be of little consequence for buy to let investors, as preliminary reports suggest that close to £22 billion was invested into the market during Q1 & 2 of 2007.
The UK’s society for mortgage intermediaries has revealed that almost 172,000 BTL mortgage products were sold during the first six months of this year, which coupled with other outstanding agreements values all active contracts at more than £100 billion. Furthermore, it is also suggested that BTL agreements now encompass more that 1/10th of all active mortgage contracts.
It is thought that rising how prices have caused many first time buyers to consider the renting option as a more financially viable alternative to buying at the current time. It is for this reason that the rental market is particularly strong at the moment, and is also allowing many landlords to charge over the odds for their accommodation (location permitting). It is also allowing BTL investors to invest more into additional properties, which is subsequently fuelling growth for this specific type of mortgage product.
However, in spite of all the positive data that is currently being presented to BTL investors, analysts have advised property moguls to tread with an air of caution suggesting that the market may not be as stable as many seem to think.
