First Time Landlords – Mortgage Deals
Since the so-called ‘pension freedom’ was launched this spring, the number of buy-to-let products available to first-time landlords has risen by 13%. The number of buy-to-let products has increased from 574 in April to 664 today, according to research by financial services website Moneyfacts.
Seen over a longer period, this represents a 40% increase on the 396 deals available just two years ago. This indicates that the buy-to-let market is flourishing for existing and first-time landlords alike, with a record number of buy-to-let deals available.
Charlotte Nelson of Moneyfacts said: “With the sector lying outside the Mortgage Market Review [undertaken last year] it is unsurprising that the number of deals has risen to an all-time high.”
So far an estimated 60,000 pensioners have exercised their ‘pension freedom’ option – the newly available option to take some or all of their pension in one lump sum. Nelson commented that saving interest rates are currently so low that it is unsurprising that many pensioners will look to other investment vehicles to fund their retirement.
However, Nelson cautions that the current low rates and easy-to-process buy-to-let mortgages will not last forever.
Nelson continued: “With base rates likely to rise at some point in the future, it is essential for those thinking about a buy-to-let mortgage to secure one now.”
Victor Jameson of Cambridge Letting Agents New View Residential commented: “Many people saw the downturn in pension returns some years ago and lost confidence in their pension scheme. Some decided to diversify their investments into the buy-to-let market and we saw a marked upturn in first-time landlords.
“Those who had already been paying pension contributions for many years, or had previously made large one-off pension contributions, found that they were tied into their pensions and were unable to diversify their investments. The recent changes in pension legislation have allowed this group to choose how they invest this money, and it would seem that a significant number are choosing to become first-time landlords.
Original Article: www.lettingagenttoday.co.uk/breaking-news
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