Saturday, February 12, 2011
The Slow Learners Club is recruiting
"Better mortgage deals are being offered to buy-to-let investors, with one lender now providing mortgages of up to 85 per cent of a propertyâ€™s value â€“ the highest loan to value available to landlords since the credit crunch. The move comes as more high street lenders look to enter the buy-to-let market, which could see competition in the sector increase and provide more choice for property investors." Somewhat surprisingly, London seems to be one of the worst cities for BTL which seems to contradict the rising rents angle: "for an investor to borrow the full 85 per cent, a property would have to yield in excess of 6.1 per cent, Bedford says. Rental properties in London are unlikely to achieve a yield as high as this." Leveraged BTLers could suffer from falling prices and higher IRs.