This is a question that is asked a lot at the moment. Investing in properties can be an expensive endeavour and it is not to be taken lightly. This article seeks to answer the above question once and for all.
Okay, let’s cut to the chase. The answer to the above question is (drum roll please) – It depends. There you go, that’s it, you can stop reading now – still here? Well let’s explore what’s happening at the moment to the UK economy and dig a little deeper so that things become clear.
Over the last few months many lenders have made it increasingly difficult for new entrants to break into the buy to let market. The credit crunch has hit lenders hard and in response they have hit the buy to let investor harder. Banks don’t trust each other and therefore are not freely lending money to each other; this is having a knock on affect on their lending to the general public and investors.
The number of mortgage products available has decreased by almost 75%. Significant players like mortgage express have pulled key products leaving many buy to let landlords wondering whether investing in properties is wise at the moment and how to make their next property purchase stack up.
Every Tom, Dick and Harry seems to be claiming that they can be the solution to the property investor’s financial problems and that they can still offer products like instant remortgaging. Investors have become weary of these deals and promises because they know some of these deals maybe boarding on the fringes of what is lawful.