Buy to Let
Use this Mortgage Comparison Calculator to compare what you are paying on your current mortgage with that of a new rate, including associated fees.
Select your preferred mortgage product from the drop-down list below, fill in the details and click the ‘Calculate’ button to show monthly cost for Interest only or Repayment loans, and Rent required.
Select the preferred mortgage product from the drop-down list below, fill in the monthly income achievable from the property and the required term of the loan to calculate the maximum borrowing achievable.
Buy to Let is still buoyant
We have seen that May has been an exceptionally good month. This was despite Q1 2012 lending figures being lower than the same quarter in the previous year. So are we seeing the first signs of the buy to let market running out of steam?
I agree that one quarter of downward data is not enough to predict that buy to let lending is leveling out. Despite June being one of the wettest in living memory, it did not dampen the spirits of landlords and property investors. We have experienced an extremely buoyant start to June. The Buy to Let Business has received a new high for hits to its website and a record number of leads.
The economic fundamentals of buy to let, is still strong. Rental demand remains buoyant. First time buyers are still struggling with the lack of interest only mortgages and are choosing to rent. While for young professionals with their need for flexibility and rapid response to changing circumstances renting remains the obvious option. Continuing demand from these two areas will ensure that rental yields stay attractive.
The volatility from the stock market, the well documented challenges in Europe, and the low returns generated from cash deposits continue to drive investors to look for enhanced returns in bricks and mortar. Unlike other vehicles, property offers a unique opportunity to take control of an investment and add value to it.
Does this mean buy to let is returning to the dizzy heights of pre-credit crunch? No and not for some time, but any doom and gloom around the buy to let market is premature. What we are seeing now is a more sustainable level of business with a pronounced upward trend.
The big news on the product front in the last few weeks is the return to 85% LTV for buy to let mortgages. This new 85% product opens the door marginally to more vanilla properties.