February 5, 2010

Landlords Concerned About Buy-To-Let Finance Options

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One of the biggest concerns for buy-to-let mortgage borrowers today is whether they will be able to get hold of affordable mortgages – talk to a buy-to-let mortgage adviser to allay your fears.

Half of landlords who want to expand their portfolios are being frustrated by the lack of mortgage finance according to a survey conducted by LSL Property Services.

They want to increase their portfolios because many of them see buy-to-let as a source of superior capital returns compared with other forms of investment. In 2009, a typical landlord made a total return of 7.6% – higher than many other forms of investment.

And while 49% of landlords polled said the current market is attractive for investment and that they wanted to expand their portfolios, only 27% of landlords say they’ll be able to buy more property in the next 12 months.

The lack of availability of mortgage finance remains the fundamental barrier for landlords – only 12% of those surveyed mentioned the availability of finance as a positive factor for buy-to-let investment.

David Brown, commercial director of LSL Property Services, says: “2009 saw the buy-to-let market return as a viable investment. Landlords recognise this, despite the rough ride they have had to endure over the last couple of years – the average landlord made losses in 2007 and 2008, but 2009 marked a return to form for property investment.

"But the availability – or lack of – of mortgage finance is holding the sector back. Even experienced landlords who are keen to take advantage of lucrative returns and improving market conditions can’t get access to the cash they need.”

A buy-to-let mortgage is more crucial than ever right now. If you are going to get buy-to-let finance it is through a specialist adviser who knows where to look and knows what loan would fit your situation. So call one today and ask them what they would do to help your investments grow.

SOURCE: LSL, 01/02/10

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog

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