Best Mortgage Deal
- Best Buy to Let Mortgages
- Buy to Let Mortgage Lenders
- Buy to Let Mortgage Quote
- Buy to Let Mortgage Advice
- BTL Portfolio Mortgages
- Portfolio BTL Mortgage Advice
- Buy to Let Remortgages
- Mortgage Application
- Best Mortgage Deal
- Mortgage Calculators
- Types of Mortgage Explained
- Which Mortgage Type Is Right For Me ?
- Mortgage Repayment Guide
- Remortgage Guide
- First Time Buyer Mortgages
- House Price Comparison
- How Much Can I Borrow
- Joint Ownership
Specialist UK Mortgages...
- Self Cert Mortgage
- Bad Credit Mortgages
- 95 % Mortgages
- 100 Percent
- Btl Mortgage
- Let to buy
- Self build
- Council right to buy
- Shared ownership
- Mortgage Protection
- Mortgage Surveys
- Mortgage Info
ALLIANCE & LEICESTER REPORTS RISE IN INVESTOR LANDLORD ACTIVITY
Investor landlord activity continues to grow, according to Alliance & Leicester Mortgages. Over two-thirds (70%) of all buy-to-let applications in December were for mortgage products under 75% LTV – a 23 per cent increase compared with the previous month indicating that 2007 could well continue to be popular for the buy-to-let market.
The bank has seen a month on month rise in overall buy-to-let applications since it entered the specialist mortgage arena six months ago. In December, it saw a 25 per cent increase in applications compared with November.
The average deposit raised by investor landlords was also up –by over £1,500 in December compared with the previous month. Those opting for an A&L buy-to-let mortgage under 75% LTV put down an average deposit of over £82,000 – 36 per cent of the average purchase price for this type of mortgage.
The figures also highlight that the majority of investor landlords want fixed mortgage repayments, with two or three year fixed rates comprising over three in five (61%) of products sold.. This is down on November (when they comprised 69%) - highlighting that more landlords are now beginning to take advantage of lower priced base rate tracker mortgages.
Mehrdad Yousefi, Head of Intermediary Mortgages at Alliance & Leicester, said: “We are continuing to see an increase in buy-to-let applications, with figures on an upward trend right up until year end. This seems likely to pave the way for solid growth into 2007 for this market. Investor landlords are seeing a very buoyant buy-to-let market, with the average property purchase price in December at £230,806 – 24 per cent higher than the average UK house price in 2006, which stood at £186,035*.”
Mehrdad Yousefi continued: “In a rising base rate environment, figures show that some investor landlords are beginning to opt for base rate tracker mortgages, which are competitively priced at between 13 and 38 basis points below fixed rate mortgages. While trackers may not be right for amateur letting investors, many professional landlords are in the fortunate position to be flexible with their finances and able to withstand fluctuations in the base rate.”
For further information, please contact:
|Alliance & Leicester Press Office||0116 200 3355|
Notes to Editor: *According to the Halifax UK Average House Price
Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.
Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.
Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600
We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500