Improved Buy to let availability

Buy to let mortgage products’ availability has increased 11% over three months to the end of September.

The number of Buy to let mortgage prImproved Buy to let availabilityoducts on the UK lending market stands at 953, which is an 11% increase, when the average number of mortgages on offer to landlords previously was 861. On annual basis, this is an increase of 35% when compared to 2014, where there were only 707 buy to let products.

Standard ‘vanilla’ buy-to-let properties already offer the lowest gross yield to landlords, but now still it has been reduced by 0.8% points in three months to 0.5%.

Houses in multiple occupation (or HMOs) have seen yields perform comparably well. HMO yields fell from 9.1% to 9.0%.

Expert says: “The number of new mortgages coming onto the market has got increased in recent months.

Meanwhile, as rents fail to keep pace with racing property prices, yields are continuing to level. Landlords with reasonable borrowing costs and a strong portfolio of these sorts of properties will still be making a good income from such investments – but these changes the case for those considering new purchases.”

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