Thursday, 16 January 2014

Landlords increasingly adding to their property portfolios


The buy-to-let market may be becoming more lucrative according to recent statistics, but does this translate into landlord rent guarantee policyholders actually investing to expand their property portfolios? The answer is yes, Advanced Rent (http://www.advancedrent.co.uk) clients may be interested to read, according to the Mortgages for Business Complex Buy to Let Index, which found a number of landlords securing finance to purchase property during the third quarter of 2013, making the most of increasingly advantageous mortgage lending conditions. 

Every section of the buy-to-let mortgage market saw an increase in new purchases for the third quarter of the year, with the exception of semi-commercial investments. Although there were slightly lower figures for remortgaging compared to the previous quarter, it remained a dominant part of total lending for the other three buy-to-let property types. These are findings that will encourage many of those considering a landlord rent insurance policy. 62 per cent of the market was accounted for by standard buy-to-let, or Vanilla lending, a 3 per cent decline from the second quarter.

As a proportion of loans, the most remortgaging in the third quarter was recorded for Houses in Multiple Occupation (HMOs), at 77 per cent, compared to the second quarter's 84 per cent figure. Meanwhile, 70 per cent of multi-unit Freehold Block (MUFB) loans were refinancing, a fall from the 88 per cent of the previous quarter. Prospective or current holders of a landlords rent insurance policy will be encouraged to read that for the second consecutive quarter, there was an improved choice of different buy-to-let products. The last three months saw 484 mortgage products on offer, 19 more than the second quarter figure and a 4 per cent boost.

Also of interest to many of those considering a landlord finance product like Rent Guaranteed will be the continued stability in loan-to-value ratios recorded by the Index, with quarter three's 68 per cent figure matching that of quarter two. However, for the vast majority of property types, there was an increase in gross yields between the second and third quarters. Mortgages for Business managing director, David Whittaker, saluted the "sustained improvement in the choice of different mortgage products for landlords", adding that cheaper deals should also result from such heightened competition.    

Whittaker said that landlords were being encouraged to increase their activity by continued low rates and high yields, with plenty of confidence exhibited by both lenders and investors. It's hardly surprising, then, that the sector is continuing to grow, and there is a lot of evidence of that, too, in demand for the highly rated finance products of Advanced Rent (http://www.advancedrent.co.uk), Rent In Advance and Rent Guaranteed. With these rent indemnity products, landlords can have fewer worries about expanding their portfolios to take advantage of the improved market.

Editor’s Note: Advanced Rent (http://www.advancedrent.co.uk) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.

No comments:

Post a Comment