Buy-to-let market continues to grow

17-Aug-2006

Despite the recent interest rate increases, the buy-to-let mortgage market remains buoyant and could benefit first time buyers looking to invest in a different part of the country to where they live.

Although the housing market is proving difficult for some first time buyers, enormous price differences between regions indicate that a buy-to-let purchase could be an ideal initial investment.

"[Despite] this month's Base Rate increase … CML (Council of Mortgage Lenders) figures show that the percentage of buy-to-let mortgages in arrears by over three months is … under one per cent," said Ray Boulger of John Charcol.

As a reflection of the overall confidence in the housing investment market, a number of product providers have increased their maximum loan-to-value to 90 per cent, with many also reducing rental requirements to 115 per cent of the monthly mortgage commitment.

Established in 1974, John Charcol is a firm of independent financial advisers specialising in the provision of mortgage advice.

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