Undeterred by the B&B crash, more people taking out buy-to-let mortgages

Posted under General by Michael

The latest mortgage survey by the Spicehaart Financial Services, indicates rise in the buy-to-let mortgages by the people in September.

The rise is more surprising in the backdrop of nationalisation of the UK’s biggest lender Bradford & Bingley (B&B) in September.

B&B’s nationalisation was the result of fear that many landlords would flee the letting market due to difficulties in re-mortgaging portfolios. Contrary to the warning, Spicehaart reported the biggest 58% increase over a year in buy-to-let mortgage applications.

Spicehaart said that investors’ confidence in the UK property market was not affected much and the landlords considered downturn as good opportunity to buy properties at low prices. Its operation director Steve Cox believed there were good opportunities and the current money market conditions were leading to belief that investment in property was safer option than share market or savings deposits. However he suggested treating property investment as long-term option.

The mortgage lenders have gradually withdrawn nearly 85% of buy-to-let deals in the past one year from, but Spicehaart is confident that investors with big deposits could still get better mortgage deals.

Demand for rentalS is continuously on rise and rents are likely to increase with further fall in house prices.

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