How Can the Buy-to-Let Mortgage Market Stay Alive in Times Like These?
If you take into consideration the financial climate and the problems that exist, it isn’t difficult to see just how the buy-to-let mortgage market is going to survive. The same factors that are driving the small buy-to-let investor to cringe at the thought of his mortgage payments is also driving potential homeowners to sign on the dotted line of a rental agreement rather than the dotted line of a home mortgage.
In the first place, the monthly payment for letting a flat or home is obviously lower than the monthly payment on a home mortgage. Of course, potential homeowners are going to opt to rent with an affordable payment while they patiently wait for the tide to change and the purchase of a home becomes more realistic.
Lending conditions are so tight, that individuals in all walks of life are beginning to feel the pinch. The demands for larger deposits only inflict a larger insult to the individual who is already faced with excessive interest rates. Anyone who even looks questionable as a credit risk for a new mortgage whether in the buy-to-let market or the home ownership market is simply going to be turned away.
Large investors who specialize in buy-to-let properties will continue to invest in buy-to-let schemes, providing family-size homes and comfortable flats to those who want them. So, while the playing field is not exactly even and the smaller buy-to-let investors are going to miss out on their dreams of expanding their buy-to-let portfolios, the market for buy-to-let properties will continue to experience sales.
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