Those thinking of buying a property to put on the rental market are in for some good news – the Cooperative Bank have announced that they are going to increase their lending to house hunters looking to buy-to-let, and it appears that other lenders may soon follow their lead.
With the UK rental market booming under the current economic climate, the buy-to-let market is increasingly seen as a safe funding option for lenders.
Not only are there many first-time buyers who can’t afford to get on the property ladder, but even those who have saved a modest deposit are cautious to invest due to job security fears or worries that property prices could drop further. This has lead to a greater demand for rental properties, which in turn has pushed up the cost of renting.
The result? The buy-to-let market has become an attractive prospect for mortgage lenders and, as the market becomes more competitive, better deals are available for investors looking for buy-to-let mortgages. If you want to make your name as a landlord, now may be the perfect time.
Thinking of buying to let in 2012? Get some expert advice from KFH