The continued rise in popularity of Buy-to-let Mortgages

The Buy to let market is continuing to prove popular with the British public, buy to let mortgages now accounting for around a fifth of financial advisors business.

The Council of Mortgage lenders has released recent figures which reveal that buy to let mortgages now account for around 11% of all mortgage lending.

Whoever’s figures you take their can be little doubt that the buy to let market is now very popular.

Resent reports have suggested there is a strong demand in the rental sector with high rental yields possible.

Another resent trend that has helped many first time buyers onto the market is the use of buy to let mortgages on new build property.

This works by the buyer negotiating a 15% discount on a new build or off plan property purchase, with the Builders deposit being gifted to the purchaser as a discount.

Therefore the buyer does not have to find a single penny as a deposit.

Most buy to let mortgages will only lend up to 85% loan to value so with 15% equity, buyers are able to secure a mortgage, and with most buy to let mortgages offering interest only repayments this can be a cheap way onto the housing market.

If the purchaser then rents out the property they can often get their mortgage repayments covered by the rental income. This is not always the case so the purchaser should make sure they fully research any potential purchase and consult a qualified independent financial advisor.