What is it about buy to let?

For most financial planning Enable’s IFAs in bishops Stortford would recommend some property investments. The rapid growth in popularity of buy-to-let in recent years, fuelled in part by the failings of the pensions industry has maybe got a bit out of control and the government has been trying to curb it with the introduction of the 3% levy on stamp duty in April 2016. But the fact is that many investors remain attracted by the high yields in some parts of the country, low void periods and potential for capital growth that BTL offers.

Instead of steering clear of the market, many private landlords continue to add to their property portfolios, as reflected by the increase in the amount BTL investors borrowed to invest in property last year. The volume of BTL mortgages increased by 3% last year compared with figures for 2015, according to data released by the Council of Mortgage Lenders (CML).“2016 could have been a potentially destabilising year of regulatory and political change, but the mortgage market has been resilient and adaptable,” said Paul Smee, director general of the CML.

With interest rates at a record low level, competition among mortgage providers, somewhat unsurprisingly, continues to hot up, with lenders shaving percentage points off their buy-to-let mortgage rates in an effort to entice BTL landlords acquiring new properties through their doors.
 “The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business,” said Rachel Springall, finance expert at Moneyfacts. Enables IFAs might not suggest a BTL property for you but there are other ways to tap into the property markets that we are happy to talk you though.

https://www.estateagenttoday.co.uk/features/2017/2/buy-to-let-mortgages-what-opportunities-and-challenges-lie-ahead