About Buy To Let Mortgages
The Nations Obsession - What Is It About Buy To Let Mortgages?
One reason that everyone raves about buy to let mortgages is that buy to let is investment in property and everyone has always been told that property prices always increase. This may not be technically true all the time, but the UK has seen house prices rocket over the last few decades - in fact, house prices increased by 105% during the past decade, taking the UK average house price from £81,596 at the end of 1999 to £167,020 at the end of 2009*. But that's not the only reason people all want to talk about buy to let mortgages.
As well as growth, buy to let also offers income. Your property investment increases in value over time but thanks to rental income you can also make regular profits every month. This makes buy to let one of the best investments around as many have to choose between growth and income - with property investment you get both. Of course, buy to let profit relies on a good buy to let mortgage, and that's why everyone talks about buy to let mortgages - they are the key to buy to let success.
So together, rental income and equity accumulation are two of the best reasons to think about buy to let mortgages as a real investment choice. Together they offer returns well beyond many other investment vehicles - by the end of 2009 landlords experienced a 7.6% annual return on their investments** when both rental income and house price increase were considered. With returns like that during a tough year like 2009, there is no surprise that people are still making a fuss about buy to let mortgages.
You need to be thinking about buy to let mortgages because you need to find something that will make you some decent returns every year. With low rate savings and ISAs, small pensions and a volatile stock market there are few other places where you can be sure of profit.
So if you want to talk about buy to let mortgages and the profits you can glean from them, talk to a buy to let mortgage expert. Without the right loan your rental income may not cover all of your expenses and you will only earn yourself more debt. But with the right buy to let loan sourced by a professional buy to let adviser, you can be sure that profits will not be far away. So getting talking about buy to let mortgages and start earning some serious returns this year and for many years to come.
* Halifax, 27/01/10
** LSL Property, 15/01/10
