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Buy to let investment a proven winning formula as first time buyers can’t get on the property ladder
Buy to let investment a proven winning formula as first time buyers can’t get on the property ladder
First time buyers are finding it increasingly difficult to gain access to the best mortgage deals as lenders have cut their rates for people with larger deposits to put down on a property
Maidenhead,
Berkshire,
United Kingdom
(sardnews.org)
07/09/2012
First time buyers are finding it increasingly difficult to gain access to the best mortgage deals as lenders have cut their rates for people with larger deposits to put down on a property
This has resulted in a buy to let investment mini boom, whilst first time buyers are being frozen out of the market. Lenders have cut mortgage rates to attract what are seen as low risk borrowers.
The Government recently unveiled an £80 billion scheme called the Funding for Lending Scheme which is helping lenders to offer loans with lower interest rates. Since then banks have cut their rates, but it's the borrowers with the largest deposits that are benefitting.
Gill Alton runs Alton Property Partners, offering a residential investment property service to help you build a portfolio for a secure financial future. She says:
"Being married to a Mortgage Broker I can see that there is no doubting that the Banks are still favouring those who have equity in their property, and the figures above highlight this.
"The knock-on effect is that first time buyers are still struggling to get onto the property ladder. However the question you have to ask is if the Banks were to open the floodgates again with lower interest rates for first time Buyers who had only saved a 5% deposit would we consider them to be acting irresponsibly?
"Banks view borrowers in different risk categorises and first time buyers with only a 5% deposit unfortunately represent one of the highest risk groups. So to benefit from the better rates first time buyers should focus hard on saving a bigger deposit. Easier said than done of course, which is why the UK rental marketplace is booming and it is predicted that the UK will see a further expansion of the renters in the years to come.
"This is one of the reasons why investing in property is a sound business investment as demand for good rental stock is predicted to continue to rise with the first time buyers being blocked from purchasing and the overall growth of the population. Under the laws of supply and demand the pressure will be on rents to rise. This is further enhancing property investment as a form of investment. "
Notes to Editors
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for buy to let investment in the UK. To find out how property could be the answer to your pension worries, click here. Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market
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About Alton Property Partners Ltd
Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors of residential investment property in the UK.
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