Landlords across the country are confident about prospects in the buy-to-let mortgages sector over the coming year, but how much longer will buy to let investors be able to glean high rents easily?

According to SimplyBusiness, almost 80% of those rental property investors questioned said they were confident about buy-to-let over the next 12 months, but predicted rises in interest rates and new tax breaks for first-time buyers could spell danger for professional landlords.

For the last two years, landlords have enjoyed a period of high demand for their properties, as mortgage availability stalled and housing stock plummeted. This has meant landlords could charge their tenants more, and could be sure their properties were not empty for long with more tenants queuing round the corner.

But it seems property prices are beginning to pick up in many areas, according to Halifax – which means more people are buying property again. On top of this, mortgage availability is easing up for many borrowers and the Chancellor recently enacted new rules where wannabe first-time buyers, the lifeblood of landlords, get a hefty tax break on their first home.

Julian Watson, landlord product manager at SimplyBusiness, says: “With high prices and low interest rates, landlords tell us they are able to reap healthy margins at the moment. However, in our study, many expressed grave concern for the longer-term prospects of the market. They are realistic that interest rates can’t stay this low indefinitely, and are nervous of initiatives the next Government will introduce to assist first-time buyers.”

If you are concerned about what the future may hold for your buy-to-let business, talk to a mortgage expert about making sure your finances and your potential is robust.

SOURCE: SimplyBusiness, 22/04/10, Halifax, 25/04/10

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

Many Brits got into buy to let investment over the last decade because rates were cheap and property prices were on the up. But thanks to two years of recession, being an amateur landlord is a tough job – so if you want to dedicate yourself to making money from property investment full time your first port of call must be a mortgage adviser.

A few years ago you couldn't turn on the TV without being enticed into investing your savings in property. During the boom times it seemed like a good idea and profits were quickly gleaned with little effort.

But now buy to let credit is hard to get hold of and unemployment is rife all over the UK meaning you are always at risk of losing out on some or all of your rental income thanks to failing rent from tenants. On top of that, many properties in the UK have suffered significant devaluation. Buy to let isn't as easy as it once was and to make it work takes a lot more time and effort.

But it still can be profitable, and if you recognise that and want to work harder at making the most from your investments and possibly invest further you may choose to become a professional buy to let landlord. But to do that you need professional help.

A professional landlord needs new types of credit, needs short and long term business plans and needs the right protection to make sure his or her business is safe. That's why a professional landlord needs help – a buy to let adviser can introduce a potential professional to all that they need to fund their new career and can always be there to help them fund, maintain and protect their portfolio.

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

There is not enough rental property to meet consumer demand in the UK – and the situation is worsening, according to the latest research from the Association of Residential Lettings Agents.

While this is not an ideal situation for a nation so proud of home ownership it is a great opportunity for landlords to take the reigns and create more rental property by increasing their portfolios – and making themselves a tidy profit in the process.

Its research found that during the first three months of this year, two thirds of letting agents reported more tenants than properties available. This is a 50% rise on the last three months of 2009.

ARLA says insufficient supply of good quality property means that the private rented sector is struggling to meet demand. There simply isn't enough properties for people to rent in the UK. That means every landlord who decides to increase his or her portfolio is not only helping out Brits but is also taking advantage of a buoyant market.

A buoyant market is great news for holders of buy to let mortgages. It means that rents are higher nationally and it means that there is less chance of having an empty property for any given amount of time. ARLA says the speed with which tenants are snapping up homes has increased over the last year – properties are vacant for an average period of just 3.6 weeks, which is down from 4.2 weeks 12 months ago.

But Ian Potter, operations manager at ARLA says landlords can't do it alone: "Property investors need to be treated as businesses, with proper incentivisation to invest in and refurbish older properties. This will improve standards, help the environment with improving insulation, and encourage much-needed investment to help get the market back on its feet."

SOURCE: ARLA, 14/04/10

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

Are you struggling to keep your buy to let empire standing? If you are having trouble paying your mortgages every month you are not alone – there are professionals out there who can help you get by.

A few years ago it felt like buy to let was a way to print money – the mortgages were cheap, the deposits were low and the rents were guaranteed. You couldn't turn on the TV without seeing a show telling how fantastic buy to let investment was.

But now, in a new financial world, things are a bit different. Those cheap loans are now a huge burden for some and it has finally been proven that making a profit with buy to let is hard work. Lenders are not happy to remortgage to offer a new line of credit – the buy to let dream has become a nightmare for some.

If you are regretting your investments, talk to a buy to let expert. The financial responsibility is still yours, but there are ways to alleviate the pressure. It might be that you can get a new line of credit, you might just need to rearrange your finances or you may even have to sell off a part or all of your buy to let empire.

Every struggling landlord will have a different solution to help them. But you can be sure that a buy to let professional will be able to find the right solution for you that will make sure that you stay above water.

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

The very lifeblood of the buy-to-let sector is rental income, so any news of a rental increase across the nation is good news for landlords in the UK.

According to statistics by FindaProperty.com, rents increased by 0.7% over March, marking two straight months of rises in rental prices. FindaProperty.com’s most recent rental price index stood at £820 per month, which is a £16 increase since the beginning of the calendar year.

And according to the Residential Landlords Association, there has never been a lower supply of rental property since October 2008, which is leading to the increase in rental asking prices. Simply there are more people looking to rent than there are places to rent and that's a good business opportunity for landlords.

This means it is a great time to invest in buy-to-let. One of the biggest battles for landlords is being able to guarantee rental income – without it the buy-to-let mortgage must be paid by the borrower and that can lead to a lot of financial problems. But if there is a good, steady stream of adequate rental income buy-to-let profits are not far behind.

Also, the RLA says that relatively high demand, coupled with a declining stock of properties may ensure further rises in rents until at least the end of the year.

Talk to a buy-to-let mortgage adviser about what sort of loan you could invest in during this boom period for buy-to-let profit. If done correctly, and if the property is right, buy-to-let investment could offer much better returns than most other financial investments.

SOURCE: RLA, Findaproperty.com, 29/03/10

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

Commercial property owners are putting their investments at risk from under-insurance by failing to maintain their sum insured at adequate levels, according to Aviva.

The insurer says the sum insured by the property owner should be the amount it would cost to completely rebuild the property and should include the costs of removing debris as well as architects' and surveyors' fees, as well as any contents that may be lost should the worst happen to the property.

Mark Dunham, commercial property underwriting manager at Aviva, says: "We have seen an increase in the number of properties that are underinsured during the recession but when money is tight and people need to reduce costs it's important that this is not at the expense of their insurance cover."

Insurance is peace of mind should the worst happen and having accurate sums insured on a property is paramount. The last thing you want to discover after catastrophe befalls your property is that your sum insured is inadequate – it is vital to guarantee receiving the full amount in the event of a claim.

Dunham says: "If the sum insured is too low, the policy may not provide enough money to rebuild the property. In the current economic climate, it could prove very difficult and costly to borrow the money you need to cover the shortfall thus putting the finances of the business under increased pressure."

You need to be sure that the insurance covering your property investment is complete and robust. Talk to a buy to let professional about your policy and exactly what it needs to include. Paying a little now makes sure you pay out even less should the worst happen.

SOURCE: Aviva, 26/03/10

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

The number of landlords claiming on insurance against missing rents increased significantly last year – while non-payment of rent is an unenviable situation for any landlord this news proves the need and the importance of the right landlord insurance products.

According to Endsleigh, the number of claims for the non-payment of insurance increased by 32% in 2009 and by 58% in the second half of the year alone. Carlos Thompson, head of business development at Endsleigh says: "The increase in landlords and lettings agents suffering defaulting tenants is a big problem in the industry at the moment.

"It is likely that many of these tenancies were taken up several years ago before the recession took effect, and what we're seeing now is that people's financial situations have changed and they are finding themselves struggling to meet payments that they were previously comfortable with."

If your tenant does not pay their rent then it means you are left with the buy to let mortgage bill at the end of the month. That might be affordable for a month or two but what happens if the tenant continues not to pay their rent? How long could you handle your buy to let mortgage repayments without a stream of rental income?

With the best buy to let landlord insurance you don't need to answer that question. You can be safe in the knowledge that with the right insurance your mortgage, your property investment and all your other assets are safe.

SOURCE: Endsleigh, 23/03/10

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

“Being a landlord isn’t just about collecting rent every month. There are lots of things to consider before you take the leap as a landlord," says Eddie Hooker, chief executive of mydeposits.co.uk – this couldn't be more true and all new buy to let borrowers would do well to remember that.

Many Brits investing in property think it's a matter of picking the house and getting a mortgage, but there is much more to it than that.

One thing to remember is to be realistic and flexible about the amount of rent you are asking as it is better to have some money coming in than an empty property for weeks on end. That's were homework comes in – talk to letting agents in the area and see how much you could realistically charge. Making big profits might be great, but knowing you can make enough to cover the mortgage is paramount, so don't put that at risk with too high a price tag.

Also, make sure that you know what your legal obligations as a landlord, for example, fire and gas safety standards. There are piles of regulations and rules that a buy to let landlord must do, and missing one might cost them dearly – for example, did you know that it is law that a tenancy deposit must be protected through a Government-authorised protection scheme? Also, it is law that all buy to let properties have an Energy Performance Certificate – didn't know that either? Then speak to an expert to find out what else you might need to do.

There is also protection to think about – what would happen if a handyman, working for you, slipped and broke his arm? Or what would happen if an estate agent injured his or herself while showing tenants round your property? Having the right landlord insurance is as important as filing in any health and safety form or asking for a sensible rent.

This list could go on and on as there is so much new buy to let landlords have to do and understand before the profits come rolling in. But the first step is to get a good buy to let mortgage so as to be able to afford a property. Once that is sorted, new landlords have a good base from which to build their business and hopefully make some decent profit.

SOURCE: Mydeposits.co.uk, 18/03/10

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

New figures from IVA.com has revealed a sharp rise in buy-to-let investment casualties looking for serious debt advice as their mortgages get the better of them.

The company reported a 53% leap in distressed buy-to-let investors struggling to pay their creditors. It says typical debts ranged from £163,000 to £201,000 – in all reported cases those saddled with the property debt were middle class professionals owing substantial mortgage arrears.

Terry Balfour director of IVA.com says: “We have seen a near melt down in the buy-to-let market, with a combination of rental arrears caused mainly by tenants losing their jobs, void periods and high fixed rate mortgages causing serious problems. In our experience is that when landlords do get into trouble, the debt levels become very unmanageable."

This is a serious issue – buy-to-let debt infects all the other finances of a landlord. It might mean that they cannot pay their credit card bills, they might miss utility bills and it might get to a point where they are even defaulting on their own residential mortgage.

If you are struggling with your buy-to-let loan you need to take action. Talk to a buy-to-let adviser about managing your finances better, either by taking out a new mortgage, taking out more sensible secured loans or even selling your investment. Whatever the answer, you'll find it with a professional buy-to-let specialist.

SOURCE: IVA.com, 15/03/10

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

Thanks to a moribund residential mortgage market, many more people have decided to rent in the UK and for many landlords that has meant the chance the up rents and cash in on the current private rented sector boom.

If you are a buy-to-let landlord who has seen the opportunity, you may now earn extra money each month. That's great – a good property investment should move with the market, but have you considered the affect on your buy-to-let mortgage?

You may have not thought about your loan for a while – you may have taken out a cheap rate some years ago and have since moved onto your lender's standard variable rate without noticing. SVRs are low right now thanks to the 0.5% base rate, and many people who have both buy-to-let loans and residential mortgages have been happy to stick with them. But could you get hold of a better mortgage now you have a better rental yield?

Because buy-to-let mortgages are all about rental yield – the bigger the yield, the better the loan. So if you have increased the yield on your property by a few percentage points then you may be in line for a cheaper rate.

Talk to a buy-to-let mortgage specialist about your mortgage. You may find you could get a cheaper loan which means even more rental profits over the long term – all it takes is one quick phone call.

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