January Buy to Let update
Whether you’ve got a property portfolio or a single second property, interest rates and house prices will no doubt be a concern for you. With this in mind, we look at what the year might hold for the property market with our January Buy to Let update.
How will mortgage rates impact the Buy to Let market?
“Unfortunately, interest rates on Buy to Let mortgages have increased since the beginning of the year. The average cost of a two year fixed rate buy to let mortgage has gone up from 2.94% at the start of 2022 to 6.76% at the time of writing.
“Whilst this can be concerning, property – for most – is a long term investment. Interest rates do fluctuate, but over a number of years this will balance out.
“As costs of owning a buy to let increase, this might lead to some portfolio owners selling off some of their properties. This could result in an availability of properties suitable for letting opportunity. This, coupled with a potential decrease in property prices could mean that 2023 could present opportunities for investors looking to increase their stock of properties.”
An opportunity for Property Investors?
“The flipside of high interest rates is that it may be more difficult for people to get on the property ladder. This can lead to more people looking to rent a property. According to Zoopla, the number of people looking to rent a home is 142% higher than it was five years ago. And, rental rates have increased over the last year to an average of £1,051 pcm across the UK*.
“All of which means that 2023 could represent a huge opportunity for Buy to Let investors. In fact, latest figures show that 50% of property investors plan to expand their portfolio in 2023**.”
If you want to talk about anything you’ve read in our January Buy to Let Update please get in touch. We have access to the current mortgage deals, some of which are not available directly. Contact us to talk about how we can maximise the profits from your investment.
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*source: https://www.northpropertygroup.co.uk/news/the-prospect-of-buy-to-let-in-2023/
** source: https://www.buyassociation.co.uk/2022/11/24/half-property-investors-2023/
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There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.