Landlords looking to expand their housing portfolios are finding home loans and property insurance cheaper and easier than ever, according to a report by a leading online finance company.
The Moneyfacts website reveals that landlords have more than 100 more buy-to-let mortgage deals available to them this year compared to the same time last year, and that more insurance companies are now quoting for landlord insurance policies than ever before.
According to Moneyfacts there are now almost 500 mortgages aimed at property investors and what is more, the average pay back rate has dropped from 5% to just under 4.8%. The news is indeed good for landlords and the demand for private rental properties is still going through the proverbial roof. It is noticeable that the major high street lenders have now latched onto the boom in buy-to-let and are targeting landlords rather first time buyers. Most building societies are now entering the buy-to-let loan sector.
A spokeswoman for the Moneyfacts site said: “During the peak of the credit crisis the number of buy-to-let deals shrank considerably as lenders saw it as a high risk area of the market. These latest figures, particularly a reduction in the average rate, should make pleasing and encouraging reading for landlords and property investors. Many aspiring home owners have had their property dreams dashed due to strict lending criteria and large deposits, meaning the only option left is to rent. This increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost.”
Landlords will still have the opportunity to get good deals on property throughout 2012 if reports from several sources are correct. Recent surveys from agents and banks suggest that house prices will drop further throughout the year as the possibility of a double dip recession further stagnates the housing market.