Buy to Let Remortgages in Full Demand but Landlords Need Help
The buy to let market is booming. Buy to let experts believe that there is likely to be a housing shortage in the near future as households are kept off the property ladder due to tight lending and rental property becomes hard to find. For those that can’t buy, they rent and for those not ready to buy, they rent, and for those not wanting to take on debt renting is a choice for them as well. Few buyers and many renters mean that rental property is in high demand.
Lenders have been trying to offer better mortgage and remortgage buy to let deals but landlords are having as much of a problem borrowing as buyers. This is making it hard on landlords that want to add to their portfolio. It is also making it hard on those that need the rental properties for housing. In some areas there are waiting lists at buy to let management offices. The situation is likely to become worse as the economy weakens and struggles in the eurozone and the UK economy continues struggling.
Experts believe the economic problems are going to push borrowing into higher interest offerings from lenders. If so then landlords will have a harder time adding to their portfolios and rental property will go past “high demand” and will become “rare”. Lenders hopefully will work out new products to help landlords so that rental property will still be available for those that choose it and those that have no other choice.