With activity on the rise, I’ve been travelling around a lot recently and enjoying the countryside whilst trying to avoid the M25 Car Park! What I have seen is an amazing amount of building work and renovations / extensions being carried out. Many home owners appear to be improving their current residence rather than taking the big leap of selling and moving up (or down) the ladder. This appears consistent with the general view that there is a shortage of properties up for sale and in fact, some agents have told me that they are becoming really quite worried about stock levels in the early part of next year.
Other consumers might be making the next step, but are then renting out their current property on a Buy to Let basis rather than selling it. Nice if you are in that lucky position! The rental market is certainly buoyant and showing no signs of slowing down over the coming months. So a Buy to Let might provide you with a modest return for your investment and may be the start of building a little portfolio nest egg for later on life. We have noticed that this is a growing desire for many who fear that their pension arrangements may not be sufficient and that rental income may be a suitable supplement.
Lenders are still competing for business even as we move in to the final stages of the year. Over the last week we’ve seen further launches in the 95% mortgage arena for first time buyers, lenders lowering rates in the Buy to Let sector and the specialist bridging / short term lending market has seen movements in both criteria and rate decreases.
There are many opportunities whatever your circumstances and lenders are willing to have a conversation in order to do the right deal. These are not always high street names, so do speak to someone who has whole of market access and not just a limited panel of lenders. Finally, remember to always read the small print and understand all fees involved. The lowest rate on offer may not always be the most cost effective over a period of time for you.