Lenders to Increase Buy to Let Offers to Meet Trend of High Demand from Landlords
The buy to let market is still in high demand and the trend will be continuing throughout the year according to experts. As hopeful home buyers remain strained in securing deposits the housing market will remain weak and rental demand will build. Despite the expectation that more first time buyers will return to the housing market this year than last, the boost is not expected to ease the strain on the buy to let market for adequate rental properties to meet demand.
The continued strength in the buy to let market has pushed some lenders to offer more buy to let mortgage loans. Lloyds Banking Group recently announced that they will be increasing their buy to let offerings to a level of over 20% of their gross lending for 2013. The buy to let lending made up close to 17% of their gross lending in 2012.
According to a survey of lenders by the Bank of England there is an expectation that lenders will also be increasing their mortgage and remortgage loans in 2013. The Funding for Lending Scheme is starting to make a positive impact according to the lenders and they expect offers to remain with low interest rates.
Homeowners looking to remortgage, buyers looking for mortgages, and landlords looking for low interest buy to let offers should find plenty of offers from lenders in at least the first half of the year. Not only will the offers be plenty on the market but interest rates could be some of the best in a long while.