Buy-to-let market blooms
Wednesday, February 01, 2012
Published by MILLIE DYSONCommercial | 0 Comments
Moneyfacts research has shown that the availability of buy-to-let mortgages has risen over recent months.
There are currently 486 buy-to-let mortgage deals available, compared to 386 last February, report Moneyfacts.
Buy-to-let product availability
– February 2012: 486
– February 2011: 386
– February 2010: 243
As the availability of buy-to-let deals has increased, the average interest rate has reduced.
Buy-to-let average rate
– February 2012: 4.79%
– February 2011: 5.00%
– February 2010: 5.31%
Louise Holmes, spokesperson for Moneyfacts.co.uk, commented:
“During the peak of the credit crisis the number of buy-to-let deals shrank considerably as lenders saw it as a high risk area of the market.
“Many aspiring homeowners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent. This increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost.
“These latest figures, particularly a reduction in the average rate, should make pleasing and encouraging reading for landlords and property investors.”