   
hsconline
Posts: 15
Joined: 11/6/2007
|
 There are still opportunities in bu...
|
|
|
Really good article for buy to let from times
Is buy-to-let dead?
No, but it is gasping for air. Lenders have suddenly turned very mean with all borrowers and property is now looking like a closed shop for new entrants. Gary Murphy, head of auctions for Allsop, says that their sales are as busy as ever: “We have seen a shift from the amateur to professional investors. Amateurs are no longer willing to invest because many have made fundamental errors, such as buying properties that were not going to let, or at inflated prices. Professional investors can now buy at prices that are regarded as realistic.”
Can investors borrow?
Yes, but options are increasingly limited. Moneyfacts.co.uk says that while a year ago there were 3,137 buy-to-let mortgages on the market, now just 852 remain. Typical deals now involve a deposit of about 20 per cent and rents that cover 125 per cent of repayments, according to Melanie Bien, director of Savills Private Finance. She says: “Rates have edged up but are still very competitive: instead of hiking them significantly, lenders are raising fees instead, with many charging high percentage fees or expensive flat fees. For example, Abbey has a two-year fix at 5.34 per cent with a £5,999 fee, while Alliance & Leicester has the same rate but with a 2.5 per cent fee.” These fees can be added to the loan, rather than being paid upfront, but interest will accrue. Bien says: “Novices should proceed with caution.” full articlefull article
|
|
Printable Version
New Messages
No New Messages
Hot Topic w/ New Messages
Hot Topic w/o New Messages
Locked w/ New Messages
Locked w/o New Messages
Post New Thread