Landlords Cash In On First Time Buyer’s Inability To Purchase

10 June 2012 Categories: News

Landlords Cash In On First Time Buyer’s Inability To Purchase

It isn’t a secret that manyUKbanks and building societies toughened up their mortgage lending criteria last year, and as a result thousands of first time buyers are now being rejected for mortgage loans on properties they can easily afford because they are failing the checks. While this may be bad news for potential property buyers it is good news for private landlords, as those rejected individuals and families are now being forced to consider moving into the private rental sector.

This continued demand for rental properties within the private sector, along with the low interest rates available on a large selection of buy to let mortgages, means that landlords in general are feeling very positive about the buy to let market and their ability to make a healthy profit from their investments. Many buy to let mortgages have rates below 4% at the present time but these are predicted to rise to a degree over the next 12 months.

Even with the positivity surrounding the market new landlords and potential investors are still being warned about expecting too much too soon though. Tracey Kellett, managing director of BDI Home Finders commented, “Anyone thinking of getting into buy-to-let should take a five to ten-year view, not look at what is going to happen in the short term.’