Why landlords are benefiting from competitive mortgage market
- 16th August 2017
- Buy-To-Let Property News
Improving outlook for buy-to-let with competition between mortgage providers meaning landlords’ costs are falling
The latest research reveals some good news for buy-to-let landlords. Competition in the buy-to-let mortgage market does not show signs of slowing. The average two-year fixed buy-to-let rate has fallen by 0.31% in one year.
In addition, the number of buy to let mortgage products now available has risen from 1,408 in January this year to 1,610 now - a rise of around 15% in just six months.
Despite some predictions to the contrary, rates in the buy-to-let mortgage market have continued on their downward path.
This research reinforces what we have been saying this year – that now is the time for landlords to think about expanding their portfolio and for potential new landlords to look to enter the market.
Read here where we discuss that landlords looking for inflation-beating returns should continue to see residential property as a good investment.
The summer season also presents landlords, both long-term and discretionary, with a perfect opportunity to enter the market as the summer peak season arrives and students and new hires look to move to London to study or work.
Stephen Ludlow, Chairman at ludlowthompson, says: “Now is a good time to be investing in buy to let - a market which has stayed strong and is set to continue to perform well in the long-term.”
“The fundamentals of London will not change; essentially there is a supply and demand imbalance. Recent graduates, undergraduate and postgraduate students will continue to flock to the capital and the pace of new build completions is not fast enough to meet this demand.”
“London for the short, medium, and long term will continue to be a centre of business innovation, education and research activity for a large number of British residents as well as people from Europe and indeed all over the world. As a result, there is set to be a strong, consistent demand for rental property in the capital.
Now is a good time to be investing in buy to let - a market which has stayed strong and is set to continue to perform well in the long-term
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