Buy To Let Updated:
After months of positive statistics coming from the buy-to-let (BTL) sector, landlord demand for BTL deals is soaring. In fact, figures from the Council of Mortgage Lenders show that demand for BTL mortgages grew by 18.6% in 2013, with total lending during the final quarter being 20% higher than the year before.
With this level of demand – and with a third of landlords expecting to increase their portfolios over the next 12 months, according to figures from BM Solutions/BDRC – it's encouraging to see more lenders offering BTL mortgages, either through new launches or by re-entering the market.
Post Office is the latest to get back in on the action after a long absence from the sector. It was announced last week that the lender would be launching a range of fixed rate BTL deals, covering two, three and five-year terms at 60% and 75% loan-to-value (LTV), some offering zero arrangement fees complete with attractive incentive packages.
"The new range from Post Office offers landlords even more choice in the market which is great to see," said Charlotte Nelson, finance specialist at Moneyfacts.co.uk, with it being a welcome boost to the sector to deliver some added competition.
With Post Office leading the way it'll be interesting to see whether other lenders follow suit and revamp their range, but of course, these aren't the only products on offer – check out our range of BTL best buys to see the type of deals available.
No matter what mortgage is chosen, it can't be denied that the future is looking bright for landlords. Additional figures from BM Solutions/BDRC show that 80% of landlords are able to make a profitable full-time living from their portfolios, and with rising rents it means yields are increasing too.
It's set to be a good year for the sector, and with increasing demand it could mean even more competition will follow…
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