Letting agents, landlords, and those with the sense to invest take advantage of buy to let mortgage rates while they were low are likely rejoicing right now as it looks as if 2013 will be another bumper year with mortgage rates staying somewhat low and tenant demand continuing to increase. The economic uncertainty, credit restrictions, and additional problems have left many people choosing to rent instead of purchasing a home offering those with rental properties the chance to continue to profit from the current home owning situation in Britain.
Landlord Assist the tenant referencing agents stated that there are many investors that are taking a look at the optimal buy to let mortgage rates and the lending restrictions for those interested in letting to expand their current portfolios. These investors are taking advantage of the high growth in tenant demand and the fact that it is easier to get lending from the banks for buy to let properties then it has been in the past. In fact, according to the agent group landlords are getting mortgages at a large discount when compared to what properties would have cost in 2007 before the market collapsed.
Marketing director for Landlord Assist, Graham Kinnear, stated that there have been investments over the last few years and there are many now that offer steady income to those who can afford to take advantage of the low mortgage rates and get into the real estate market as a letter. He added that investors have quickly jumped on the strong rental returns and the weak prices that have afflicted the housing market over the last year and now that the base rate is predicted to stay low it is highly likely that landlords will continue to move into the market over the course of 2013 when demand for housing is expected to remain high.
However, the one thing that these letting agencies are not accounting for is if there is a substantial fall in the housing prices over the next year as some experts predict because in this case landlords could see a large decrease in their portfolios worth quickly making it a longer process until they actually start to see profits. Those that can afford to take the risk however are still encourage to do so as it is one that will likely pay off in the long run.