Buy-to-let mortgages

Buy to let mortgages will soar in the coming months as landlords look to add to their already extensive portfolios.

It seems that severe interest rate hikes throughout 2007 haven't stopped buy to let investors taking out mortgages left right and center.

It's believed that many consumers are renting despite paying more each month than they would on mortgage payments, because they fear being in large amounts of debt.

According to new research from Landlord Mortgages has shown that the buy to let market has experienced lower rental yields for the fourth consecutive year.

'Rental yields' are worked out by how much an investor puts into a property against the profits they turn from it.

Building society Skitpons have altered the criteria of their buy-to-let mortgage range, in what they claim are measures to help make the process easier for landlords.

Buy-to-let mortgages are proving a useful measure not just for the people that possess them, but for the people renting the properties.

Many families are now beginning to find the right place to live with competitive rental agreements as apposed to tying themselves into lengthy mortgages.

Building Society Leeds have come up with a new lifetime tracker deal, aimed at the buy to let market in the UK.

The deal will be following the Bank of England base rate plus 0.99 per cent for the life of the mortgage and offers flexibility to pay off all or part of the mortgage without penalty, according to the group.

Building Society Leeds are offering a new three year fixed rate mortgage deal aimed at buy to let investors. 

The agreement possesses a secured rate of 5.75 per cent, and is available at up to 80 per cent loan-to-value.

Building Society Alliance and Leicester have unveiled a new range of mortgages including a self-cert deal and a buy-to-let mortgage.

The group are hoping to cash in on the ever expanding buy-to-let sector of the market by offering a two-year mortgage that tracks below the Bank of England base rate.

People applying for buy-to-let mortgages for the first time are educating themselves more than ever on their rights as landlords.

The statement from the National Landlords Association (NLA) comes in wake of the government's tenancy deposit protection scheme, which took effect from the April 6th in England and Wales.

The buy-to-let mortgage remains a popular tool for investors according to research from the Mortgage Trust.

The group have reported that many consumers appreciate that there is both short and long term investments to be had by putting money into property.

According to one leading financial analyst, the buy-to-let mortgage will thrive in the next ten years as people shun buying property in favour renting. 

Stephen Leonard, director of mortgage for Alliance and Leicester commented: "Demand for rented property has been growing steadily in recent years and returns on buy-to-let have increased."

He added: "This growth is expected to continue, as the number of renters rises further and buy-to-let becomes even more attractive to both existing and potential landlords."

Mortgage provider Alliance and Leicester have launched a new range of mortgages, and cut rates to entice potential customers.

Amongst the deals on offer is a buy-to-let two-year fixed-rate mortgage, available for 5.18 per cent and an arrangement fee of £1,999.

Mortgage brokers Kensingtion have launched a new range of deals aimed at helping those with bad credit histories.

Buy-to-let mortgages were more popular than predicted in 2006 according to new research from the Council of Mortgage Lenders (CML).

The same research also culminated in the group forecasting a 7% rise in house prices in 2007, which will make it increasingly difficult for first time buyers to get onto the property ladder.  

According to specialist lenders, Paragon buying to let can be hugely profitable at present with a strong demand for rented accommodation. 

 Alliance and Leicester have unveiled a new range of specialist mortgages with lower rates, aimed at suiting the borrowers specific needs. 

There are now over 2,000 different buy-to-let mortgages on offer in the UK according to a new financial product comparison resource.  

The Royal Institute of Chartered Surveyors (Rics) has reported lower requests for instructions to let property, over the autumn period.