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Buy to Let Remortgages - The Highs and Lows 2012
The Buy to Let Market continues to grow steadily, as the rental market stands strong as one of the few market sectors to achieve month on month growth.
Press Release – Buy to Let Remortgages
The Buy to Let Market continues to grow steadily, as the rental market stands strong as one of the few market sectors to achieve month on month growth. However as an increasing number of tenants fall in to arrears it is more important than ever for landlords to maximise their profits from the rental income they do receive. One effective way of doing this is by looking at expenditure, and by far the most costly one will be your mortgage costs. By reducing these down as much as possible, you stand to make a lot more profit.
In 2012, according to data released by the Council of Mortgages Lenders, the buy to let market increased in quarter two of the year by 5%. Between March and May, lenders have approved 33,200 loans, which is worth a reported £3.9 billion (an increase from 32,300 mortgages, worth £3.7 billion from quarter one). Year by year, the buy to let market continues to grow steadily, with the number of loans up 14% (from 29,100) and the advanced amount is up 18% (from £3.3 billion). http://www.ascotmortgages.co.uk/
The BTL lending growth has been divided equally between remortgaging and loans for purchasing a house, with both providing a volume increase of 3% over quarter one of this year. Year by year, lending offered for the purchase of a house has increased steadily (up by 17% for the volume and 21% for the value) than that of remortgaging (up by 10% for the volume and 15% for the value). Yet, BTL lending is remaining to recover well from the low point of 2009, and lending volumes continuously linger around one third of their 2007 peak.
The overall stock of the BTL mortgages continues to rise. By the end of quarter two, the number of loans still outstanding had totalled at 1,416,00, and was worth a reported £160.7 billion (up from 1,405,000 and a reported £159.4 billion from the end of quarter one, and also from 1,338,00 a reported £153 billion from the previous year).
The common maximum loan to value currently available on BTL mortgages still remains to sit at 75%, with the common minimum rental cover coming in at 125%. Both have remained unmoved for the past three years.
The data released shows a slender development in the overall performance of BTL loans, with the majority of borrowers who are over three months in arrears dipping from 1.69% (end of quarter one) to 1.56% (end of June’s figures). For the owner occupied sector, that proportion remained unmoved at 2.05%.
The majority of BTL properties that were taken into proprietorship remains unmoved at 0.12%, but for the owner occupied sector, the released data showed a slender dip (0.08% to 0.07%). This isn’t a surprise, but, to see a lower rate of owner occupied households, there is has been a determined effort to extend restraint wherever it has been possible.
Commenting on the released data, the director general of Council of Mortgages Lenders said:
“Buy to let is continuing to show signs of recovery, and growing broadly in line with expectations. The rental sector has grown strongly over the last decade or so, and buy-to-let continues to help deliver a wider choice for tenants.”
Ascot Mortgages, a UK leading and independent mortgage broker, provide expert advice and guidance for people who are considering a buy to let mortgage. If you’re considering your first BTL mortgage, or just adding to your current property portfolio, then Ascot Mortgages can help. They set out to provide you with the best option available to you within minutes.
Kevin Gibson of Ascot Mortgages says “Second only to ensuring your receive the highest obtainable rental value, is ensuring you pay the lowest rates on your mortgages – these two things together will help you make maximum profit from your rental property. It is important that both of these are reviewed regularly, and you remortgage your buy to let on to the most competitive deal as often as is financially beneficial. Landlords are urged to contact us for a few initial review, we are specialists in the buy to let market”
At Ascot Mortgages, they appreciate that the BTL market can be a lucrative one for landlords and property investors alike, however, they are eager to make sure that you invest in the right property for you and securing the best available mortgage. By trusting their industry knowledge, along with their expert guidance, Ascot Mortgages can assist you in receiving the best possible returns on your investment. This in turn, places you in the best possible position to help build you property portfolio for years to come.
- Ascot Mortgages Ltd – Your Buy to Let Mortgage Specialists
- Web www.ascotmortgages.co.uk
- Ascot Mortgages Ltd, 8 Webster Court, Warrington, Cheshire, UK WA5 8WD