Buy-to-let mortgages
Introduction to buy-to-let mortgages
The buy-to-let market continues to be a popular form of investment. Association of Residential Letting Agents (ARLA) reported that by the middle of 2006 there were over three-quarters of a million buy-to-let mortgages worth £84 billion.
A buoyant property market, low interest rates and poor performance by the stock market have fuelled the buy-to-let boom. There has been speculation that the buy-to-let market has reached its peak performance. However with a slow down in first time buyers, higher divorce rates and people settling down later in life the signs are encouraging for landlords as demand for rented accommodation is increasing.
Commenting on the figures, CML Director General Michael Coogan said:
"Buy-to-let lending is often portrayed as more risky and prone to market shocks than mainstream lending. But our figures show the opposite - that lenders are maintaining conservative lending strategies and experiencing very low default rates."
"Given the lacklustre performance of the stock market and of traditional investment returns, more people are widening their portfolios to include property. Provided they are realistic about rental income and expect to hold on to property as a long-term investment, this continues to look like a reasonable strategy."
Did you know that the average value of UK properties doubles every 10 - 15 years?
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