UK Investment Mortgages
UK Investment Mortgages | Free Landlords Research Report
The demand for UK investment mortgages is increasing and that's hardly a surprise. Changing patterns within the UK's social and economic landscape are contributing to a healthy outlook for UK investment mortgages. We have all heard politicians state that we need 200,000 new homes a year to keep up with demand. Current construction totals fall far short of that, and in the current climate developers are struggling to sell new properties. According to the Office for National Statistics (2007), the number of British households will rise from around 21 million to around 26 million within the next 20 years. This is an increase of 200,000 a year, hence the statements that we read and hear. The shortfall in the number of homes makes the picture a healthy one for the UK investor mortgage.
Another contributor to the outlook for UK investment mortgages is the increase in immigration over the past decades. This is a combination of legal immigration from countries that have recently joined the EU and illegal immigration. No-one knows exactly how many people are entering the country each year, but this puts additional strain on housing stock, making it a good time to consider UK investment mortgages. After all, since many recent migrants rent for quite a while before buying, it makes sense to consider UK investment mortgages for property purchase.
Adding to the picture for UK investment mortgages are changes in living patterns. With first time buyers delaying their house purchase for numerous reasons, thanks to previous rising house prices and now uncertainty in the marketplace, there are many more single person households around. In addition to first time buyers, single person households may include people who have divorced, with the number of married and cohabiting households expected to fall below half of all households within the next 20 years. Many retirees also live alone. The increase in these groups all lead to a favourable outlook for United Kingdom investment mortgages, so it's a good time to get into BTL.
Rental and the BTL Sector
Many young people also plan to rent indefinitely. Ask any young person if they feel they could afford to get on the housing ladder and the majority will answer "no". This is a factor to consider if you are thinking about UK investment mortgages. And data from the Council of Mortgage Lenders in 2007 suggested that the number of under-25s planning to own their own homes has declined significantly in the last 20 years.
One reason for this, which contributes to the demand for UK investment mortgages, may be the change in working patterns. While people once had a job for life, this is no longer the case, with many people changing jobs every couple of years. And even for those who stay with the same company, it is likely that they might have to move to a different location for a period. People who are taking out UK investment mortgages should be aware of this trend. It is also worth thinking about the type of property that might suit different groups. Many small one and two bedroom properties are targeted towards young families, but they might also be suitable for young professionals, retired people and people who are looking for somewhere to live while they at work. So there's a wide range of property to consider when it comes to UK investment mortgages.
