Landlords rake in money from buy-to-let investments
Buy-to-let landlords are reaping the benefits of house price growth and it shows from the amount of money they’re putting down as deposits.
These have increased 15% in the past year with investors now applying for mortgages with £99,914 of equity under their belt, up by £13,289 when compared with 12 months ago.
Research by broker Mortgage Advice Bureau shows that these higher cash deposits mean that better interest rates can be accessed and in the long-term this leads to better value for money for investors.
The average loan-to-value deal sought by borrowers dropped from 62.2% to 56.5%, increasing their chance of obtaining lower interest rates as they have a good track record.
The average property value among buy-to-let borrowers is just under £230,000, similar to the £231,000 sought by the average home buyer.
It’s a fantastic time for buy-to-let investors to find the right property and deal. Those with larger deposits will especially benefit, so now’s a good time to take the leap. The proportion of buyers searching for a loan has also gone up from 29% in the fourth quarter of 2013, to 41% in the last three months of 2014; demonstrating that buy-to-let properties are in more demand than ever.
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