Buy-to-let mortgages
Encouraging growth
Cultivating returns in the buy-to-let sector
It is widely accepted that one of the few bright stars in the financial product market throughout
the past twelve months was the much debated buy-to-let sector. Lee Tillcock discusses what 2012 might hold in store
Very few individuals working within the business finance sector expect 2012 to offer any real improvements in terms of product choice and eased criteria. That said, the key drivers behind the boost to, and the positivity surrounding buy-to-let looks set to continue for a while yet. The Bank of England’s latest Credit Conditions Survey for the period October-December 2011 shows that demand for buy-to-let mortgages is reported to have increased for the sixth consecutive quarter.
Looking forward to 2012, Tracie Pearce, Head of Product Management and Pricing at The Mortgage Works, sees more good news. “Demand for buy-to-let is expected to remain strong in 2012 as the underlying drivers of growth; constrained supply of both affordable housing stock and mortgage finance for homebuyers will continue to support demand for rental property. In addition there has been a fundamental shift in attitude towards renting, which is now seen as an affordable and flexible alternative to home ownership and this will support further growth in the private rental sector and buy-to-let.”
It is fair to say that over the last few years, landlords have struggled far more to access finance than tenants.
Product availability Although the lack of mortgage finance has hindered landlords from increasing their portfolios over the last few years, Moneyfacts figures show that the availability of buy-to-let mortgages improved during 2011, falling away slightly in the final quarter. Will 2012 see choice improve again?
Charles Haresnape, Managing Director of Aldermore Residential Mortgages, certainly thinks so. “We’ve seen criteria become more accommodating and rates more competitive in 2011 and the trend will continue in 2012. We may also see
READERS ARE REMINDED THAT BUSINESS MONEYFACTS IS COPYRIGHT
February 2012
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