New landlords have more options open to them in the mortgage market, potentially making it easier to take the first steps towards building a property portfolio.
The latest statistics from Moneyfacts show there are now 664 mortgage deals available to new landlords, up from 574 in April - a rise of 13 per cent. What’s more, it is some way above the 396 on offer in 2013.
Allison Thompson, lettings director at Leaders, says: “An expanding range of mortgages is great news for buy-to-let landlords, who now have a greater chance of securing the mortgage that is perfect for them.
“Finding the right mortgage on the right terms is one of the key steps towards achieving a healthy return on a buy-to-let project, along with identifying a suitable property in a good location.”
Recent changes to pension regulations making it possible to more easily withdraw a lump sum from a pension pot have so far been utilised by 60,000 pensioners, many of whom have done so in order to invest in a buy-to-let property.
Lenders have subsequently increased the number of mortgage products on offer in order to meet the growing demands of this group.
Allison explains: “This year’s changes to the pension market have created an opportunity for a huge number of people to use their savings to invest in property. With the buy-to-let market renowned as a lucrative option in comparison with other types of investment, it is no surprise so many have opted to do so.
“Rents are high and mortgage rates are at an all-time low, so the potential for achieving a big return is higher than it has been for some time. What’s more, landlords are also likely to benefit from substantial capital appreciation in the medium to long term.”
Anyone who is considering starting their own property portfolio should seek expert advice on where to invest and what type of property is likely to deliver the return they are looking for.
Each of Leaders’ 100-plus branches is staffed by a team of experienced, local professionals who are ready to support buy-to-let investors in identifying a suitable property and managing it successfully on their behalf to achieve the best results.