Buy-to-let investors sit tight - Mortgages - News - Moneyfacts

News

Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

Buy-to-let investors sit tight

Buy-to-let investors sit tight

Category: Mortgages

Updated: 02/10/2009
First Published: 01/10/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Buy-to-let investors are no longer reviewing the property market on a regular basis and seem content to hold onto their assets for the foreseeable future, figures from the Young Group have revealed.

It found that fewer than a third of residential property landlords are tracking their mortgage options on a regular basis, with just one in ten evaluating the market conditions and possibilities as regularly as every three months.

It is the second quarter in a row that such a low proportion of investors were found to be tracking their options.

ust under a third of respondents said they evaluated their mortgages at least every six months, a huge fall from the 82 per cent who said that was the case in the second quarter of last year.

Respondents said that they expected to hang onto their existing property portfolio for an average of 12 years, up from the figure of ten years that was recorded in the third quarter of last year.

"It seems they may be jaded by the current lending conditions and have taken their eye off the ball when it comes to tracking the mortgage market," said CEO of Young Group, Neil Young.

"There may also be a general assumption that with base rate currently at an all time low, dropping onto a lender's Standard Variable Rate at the end of a deal is the best option, but this may not automatically be the case."

By neglecting the market, landlords are risking losing out on competitive deals, he warned: "Just because there are fewer mortgage products available, investors shouldn't take their eye off the ball.

"Arguably, now is the time to be paying more attention to the mortgage market to avoid the risk of losing out when base rate inevitably rises in the future."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.
 
Close