Fair Rents (Scotland) Bill or Artificial state manipulation of free market rent?10:34 AM, 6th November 2020
About 4 weeks ago 36
Given the recent upheaval in the Buy-to-Let market, many would assume that the number of products to first-timers would dwindle along with demand. However, the latest research from Moneyfacts.co.uk shows the number of deals to first-time landlords has risen to record levels, increasing by a massive 13% since the start of this year.
Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said: “It is great news that first-time landlords have more choice than ever before, increasing by a whopping 339 BTL products in just two years. Not only do first-time landlords have more choice, but they have also seen rates fall by 0.36% over the same period.
“Despite market uncertainty, providers are certainly not shying away from offering this risky group deals. Providers know all too well that many borrowers on their mortgage books will be coming to the end of their term and reassessing their deal, so they need to attract new business. As such, they’re enhancing their ranges and offering these extra deals to entice those customers who are new to the market, thereby breathing new life into their mortgage book.
“While multiple regulations and tax changes may have put some borrowers off becoming a landlord, it seems many are undeterred. In fact, it has been reported that Accord has seen the number of applications from aspiring landlords double over the past 12 months.
“This is little surprise when many consider bricks and mortar as a safe bet. With savings rates low, many are looking to get better returns elsewhere. Also, while rents are high and mortgage rates for first-time landlords are still falling, the potential for a decent return is high.
“Potential investors should not get ahead of themselves however. Since September 2017, they face checks and questions about their finances and will need to do their homework to ensure they get the best deal.
“Of course, BTL is not without its risks, and anyone seeking to enter this sector would be wise to seek the advice of a financial adviser to see if this is the best route for them.”
The Property118.com mortgage sourcing tool is available for you to use with our compliments (no charge). Once you have found a product you like simply click the “ENQUIRE” button and complete your contact details in order to progress matters.
This system can be used to source both residential and buy to let mortgages. It is updated live by mortgage lenders and even includes mortgage products available exclusively via broker networks. You can compare total costs of mortgages, including fees, over any period of time.
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