Buy To Let Mortgages News

3/7/2007

It has only been during the last 10 years that people have come to understand the meaning of buy to let.

It is now a very popular form of investment and last year 11% of the gross mortgages in the UK were for the buy to let market.

Mainly due to low interest rates and the rise of property prices plus a huge amount of publicity, investing in property has become a way of life for many.

Unfortunately, like in all things, there are those who are now abusing the system. The HH Revenue and Customs are now hot on the trail of those who are not paying the correct tax. They had an amnesty until 22nd June but now intend to target some 80,000 whom they think have been less than honest when filling in their tax returns. Investors may claim for interest they pay for buy to let mortgages against their rental income but may not use capital repayment to lower tax amounts.

It also appears that some landlords are getting residential mortgages, which are usually cheaper, for their buy to let properties.

It is necessary now for brokers and lenders to ask the right questions about existing properties investors own, asking if they are selling or renting and also to make sure if they are residing or renting out the property they are purchasing. Unauthoriised renting will invalidate insurances and incur penalties from their lenders.

Borrowers should have contingences in place to pay for extra costs should bank rates rise in the future and lenders should make sure they are lending to genuine investors.

It would seem that this is mostly happening and in 2006 only 0.59% of buy to let mortgages were in arrears of more than three months compared to 0.65% in 2005.

Now that more publicity has been given to these areas it is unlikely many will be able to abuse the system and those trying must expect to be caught.

The buy to let market has now become so effective no one should be allowed to create problems for the buy to let sector as a whole.

2/7/2007

Buy to let mortgages are expected to grow faster than the wider mortgage market by 2011. This year the gross amount for buy to let should reach £45.4bn and possibly rise to £69.1bn by 2011.

Several factors have been the basis for a rise in the buy to let market including unemployment, low interest rates and the continual rise of house prices.

The housing market has shown that property can be a good long term investment and it has encouraged more people to join the buy to let property market.

Buy to let investments have seen a growing popularity over the last decade and have risen at an average rate of 43.3% per annum.

Last year saw a rise of 47.6% of buy to let loans over the previous year.

A report states that banks should use a good identity management for customers and employers to make sure that systems can be checked when access is required, using ID’s and passwords to control access.

28/6/2007

According to a recent research London is the most expensive city for the renting of residential properties. Birmingham came a close second with a luxury apartment costing £1200pcm

The survey used seven major UK cities. It found that Leeds was the cheapest city with a luxury apartment costing £694pcm with a studio flat costing £404. London’s studio flats cost 81% more than Leeds and a luxury apartment is 247% more expensive.

Cardiff was one of the cheapest cities and rent here for a l bed flat was £504pcm.

Most people are unable to afford to rent a luxury apartment in London but Leeds is a more affordable option. People looking for this type of property should consider the advantages of other UK cities.

London’s rent are high because it’s the capital but to live outside the centre of town commuting costs could make up more than renting costs.