We all know that house prices have increased tremendously over the past decade many of us are now feeling the pinch as property prices have doubled but average wages have remained the same. For those who were already on the property ladder before the boom they are able to get the champagne out as they have benefited from huge increases in price for just buying at the right time. Unfortunately for those who are still looking to get on the property ladder it is now harder than ever and they are finding that their average yearly wage doesn’t quite cut it, which has also created a stalemate in the market meaning that many can't move house. A well known company called You Sell Quick can help with this situation http://www.yousellquick.co.uk but it is particularly important that the banks improve there lending to earnings ratio so that buyers become available.
Buy to let mortgages became available in 1996 these had a different criteria to attaining your traditional residential mortgage. For the residential house buyer a mortgage is based upon your income, this differs from attaining a buy to let mortgage whereby the loan is dependant on the merits of the house itself and whether it’s rental can cover the mortgage payments by at least twenty percent. This difference in criteria has created the imbalance as properties have been easily purchased without incomes being accounted for and this extra demand from investors has forced prices further up. We are now in an ironic situation where would be residential buyers who can’t afford to buy their home due to this income imbalance are now only able to rent which has now increased the cost of renting. this appears to be a problem that has already gone to far and unless the government take out more measures to restrict investors then BTL properties will continue to inhibit normal purchasers from owning their own home. It's important that you arrange your own finances carefully and look after your credit report as can be seen here http://www.monroemainstreet.com/