Skip to main content

Buy-to-let mini-boom runs out of steam but landlords dash to remortgage as rates fall

Buy-to-let landlords are staging a dash to remortgage as interest rates fall but the recent mini-boom property investment is running out of steam, new figures show.

The number of buy-to-let mortgages taken out in the first three months of the year was up 4 per cent annually, according to the latest Council of Mortgage Lenders statistics.

In the same period last year buy-to-let mortgages were growing at 30 per cent annually, however, the rapid pace began to tail off last summer.

Buy-to-let mortgage advances: The pace of the rise in the number of new buy-to-let mortgages being advanced has slowed, CML figures show.

While the number of buy-to-let mortgages being taken out has risen substantially since the 2009 to 2010 slump, they running at less than half the level seen at the peak of the boom in 2007.

The CML said that almost half of buy-to-let lending was currently remortgages and property investors now accounted for 13.4 per cent of outstanding mortgages in the UK.

CML director general Paul Smee said: ‘The buy-to-let mortgage market is performing well, against a backdrop of robust landlord - and tenant - demand for good quality rental property. 

  Buy-to-let essential reading and tools The secret to buy-to-let riches? A one-bed flat in Wales could deliver the best returns Ten tips for buy-to-let: the essential advice for property investors SIMON LAMBERT: Time to drag buy-to-let mortgages out of the wild west Could you save money on a buy-to-let mortgage? Check the best rates Message Boards: Speak to other buy-to-let investors Are you a landlord? Find the best buy-to-let insurance deals here

‘Loan performance compares favourably with the owner-occupier sector, and buy-to-let continues to grow as a proportion of the overall mortgage market.’

Investors have been tempted into buy-to-let by rental returns, which look attractive compared to low interest rates. The average rent-to-property value yield stands at 6.2 per cent, according to a report issued this week by the largest national letting agent Countrywide.

 

However, investors need to have deep pockets, with lenders typically demanding deposits of 25 per cent for buy-to-let mortgages, which amounts to £37,500 on a £150,000 property.

David Whittaker, of broker Mortgages for Business, said: ‘Landlords are understandably trying to take full advantage of the returns on offer, which is why we’ve seen an increase in the number of buy-to-let investors trying to refinance in the first quarter as they look to expand their portfolios.

‘This activity has been helped by increased competition between the buy-to-let lenders. Rates and fees are down and there are increasing options for landlords looking to finance more complex deals. The Funding for Lending Scheme too has helped by loosening the supply of credit to lenders, and they are passing the savings on to investors.’

Snapshot: The Landlord Centre's look at the buy-to-let market

Buy-to-let mortgage rates have fallen over the past year with borrowers now offered the chance to fix for two years at about 3.49 per cent, with BM Solutions, or five years at 3.99 per cent with Godiva.

These deals remain substantially above the lowest residential mortgage rates, however, with those with similar sized deposits able to fix for two years at less than 2 per cent or five years at 2.5 to 3 per cent.

The average fixed buy-to-let rate taken out in the first three months of the year was 4.48 per cent, according to broker the Landlord Centre, down from 4.67 per cent at the end of 2012, with almost half of borrowers now opting to fix.


Popular posts from this blog

Study Abroad USA, College of Charleston, Popular Courses, Alumni

Thinking for Study Abroad USA. School of Charleston, the wonderful grounds is situated in the actual middle of a verifiable city - Charleston. Get snatched up by the wonderful and customary engineering, beautiful pathways, or look at the advanced steel and glass building which houses the School of Business. The grounds additionally gives students simple admittance to a few major tech organizations like Amazon's CreateSpace, Google, TwitPic, and so on. The school offers students nearby as well as off-grounds convenience going from completely outfitted home lobbies to memorable homes. It is prepared to offer different types of assistance and facilities like clubs, associations, sporting exercises, support administrations, etc. To put it plainly, the school grounds is rising with energy and there will never be a dull second for students at the College of Charleston. Concentrate on Abroad USA is improving and remunerating for your future. The energetic grounds likewise houses various

Best MBA Online Colleges in the USA

“Opportunities never open, instead we create them for us”. Beginning with this amazing saying, let’s unbox today’s knowledge. Love Business and marketing? Want to make a high-paid career in business administration? Well, if yes, then mate, we have got you something amazing to do!   We all imagine an effortless future with a cozy house and a laptop. Well, well! You can make this happen. Today, with this guide, we will be exploring some of the top-notch online MBA universities and institutes in the USA. Let’s get started! Why learn Online MBA from the USA? Access to More Options This online era has given a second chance to children who want to reflect on their careers while managing their hectic schedules. In this, the internet has played a very crucial in rejuvenating schools, institutes, and colleges to give the best education to students across the globe. Graduating with Less Debt Regular classes from high reputed institutes often charge heavy tuition fees. However onl

Sickening moment maskless 'Karen' COUGHS in the face of grocery store customer, then claims she doesn't have to wear a mask because she 'isn't sick'

A woman was captured on camera following a customer through a supermarket as she coughs on her after claiming she does not need a mask because she is not sick.  Video of the incident, which has garnered hundreds of thousands of views on Twitter alone, allegedly took place in a Su per Saver in Lincoln, Nebraska according to Twitter user @davenewworld_2. In it, an unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of the customer recording her. Scroll down for video An unidentified woman was captured dramatically coughing as she smiles saying 'Excuse me! I'm coming through' in the direction of a woman recording her A woman was captured on camera following a customer as she coughs on her in a supermarket without a mask on claiming she does not need one because she is not sick @chaiteabugz #karen #covid #karens #karensgonewild #karensalert #masks we were just wearing a mask at the store. ¿ o