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The buy-to-let boom continues

The buy-to-let boom continues

Category: Buy To Let

Updated: 14/10/2015
First Published: 14/10/2015

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 It is now over 6 months old so the content may be out of date.

Have you ever thought about investing in buy-to-let? It seems that a growing number of people are, with latest figures from the CML showing a definite surge in buy-to-let (BTL) lending in the past year as landlords rush to make the most of the competitive market.

Lending gets a definite boost

According to the figures, a total of 22,200 BTL mortgages were advanced in August, with the value of those loans standing at £3.4bn. While both of these figures are down on a monthly basis (a usual seasonal trend), they mark annual increases of 37.9% and 47.8% respectively, being significantly higher than the figures recorded in August 2014.

Much of this was due to remortgaging activity in the sector: the total number of BTL remortgages (11,500) was up 51.3% on an annual basis, while the value of those loans (£1.9bn) posted a 72.7% year-on-year increase, which just shows how keen landlords are to remortgage to a better deal. There's also a growing number of landlords looking to start or expand their portfolio, with the number of BTL mortgages advanced for a new property (10,500) marking an increase of 26.5% year-on-year.

Given the state of the market at present, it isn't surprising. Our own research shows that the number of BTL mortgages available hit a seven-year high in August, and since then the product count has only increased, with a record 1,202 mortgages now available to landlords. Not only that, but rates have fallen considerably in recent years, in line with the mortgage market as a whole, which means landlords can now choose from the highest ever number of products while also benefiting from the lowest ever rates.

Time to take advantage?

The market is certainly recovering strongly, and there are thoughts that the BTL boom could continue, particularly with the recent pension freedoms in force. Some people could decide to withdraw their pot and will be looking for ways to re-invest the money, and for many, BTL could be a viable choice.

You're certainly not alone if you're thinking of getting in on the action, and you're picking a great time to do so! However, there's still a lot you need to think about, from the tax implications to the investment risks, not to mention things like landlord insurance. It's important to seek suitable advice before you take the plunge, particularly if you're thinking of using your pension pot to cover the purchase.

However, if you're simply looking to expand your portfolio or remortgage your property, you'll already be aware of the risks, so check out the best BTL mortgages available to take the next step. Given the rates on offer, you could even lower your mortgage repayments – particularly if you're on your lender's current SVR – so start comparing the options and see how much you could save!

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.