Many property investors now see this as the perfect time to expand their portfolio’s as property prices decline and rental demand soars. According to Mortgages for Business 3 out of 5 property investors intend to increase their current portfolio over the next 6 months. The study revealed that 63 per cent of investors would need to re-mortgage their existing portfolio’s to fund the expansion and 1 in 5 believe that lenders should reduce fees for property investors. 62 per cent believe that mortgage lenders are not doing enough to aid investors and could do more. 15 per cent believe that lenders should do a case by case study rather than a one hat fits all computer and credit score analysis type evaluation, and 18 per cent believe that lenders should increase Loan to Value (LTV) ratios.
The study by the independent mortgage broker also highlights the type of property investments that property investors intend to make over the next 6 months. 14 per cent intend on investing in the commercial or semi commercial property market, 15 per cent with Multi-unit Freehold Blocks and 22 per cent intend on expanding into the Houses in Multiple Occupation (HMO) sector. The majority of investors are looking at vanilla buy to let property to expand their portfolio’s.
Mortgage for Business, Managing Director stated that:
“Although overall mortgage and lending to first-time buyers is finally starting to increase, landlords remain confident about the future of the private rental market and plan to expand their portfolios over the coming months.” David Whittaker also stated that vanilla buy to let properties are still very popular but more complexed deals are bringing higher yields on average and are becoming more and more popular.