A Brief History of Buy to Let
Investing in buy to let property in the UK has long been a wise choice for individuals seeking lucrative investment opportunities. Becoming a landlord is an excellent way to put your hard earned money to work today so that you can enjoy a financially secure income for today and into your retirement years. While estate investing has always been a good idea, the market has never been more favorable for buy to let investors than it is today.
Until recently, getting a mortgage to purchase buy to let property in the UK was quite an expensive proposition. Throughout history, lenders have perceived borrowing money to finance the purchase of rental property to be commercial in nature, resulting in higher interest rates and greater qualification difficulties. However, lenders and professionals throughout the estate industry have recently changed their views about buy to let investment and financing. Whereas purchasing rental properties was once considered to be a risky venture, there is now widespread acceptance of the importance and value of private sector estate rentals.
Today, it is much less difficult to finance the purchase of rental property than has been the case in the past. For many years, lenders did not allow estate investors to utilise income from rental properties to establish their ability to repay funds borrowed. Buy to let lenders are now happy to allow borrowers to claim anticipated rental income toward loan qualification. Additionally, interest rates on buy to let mortgages have become much more competitive, making it possible for individuals interested in investing in rental property to do so.
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