Let mortgage approval rises for second quarter
The buy-to-let sector has had another growth for the second quarter in a row. The last three months of 2009 saw an increase of 2,100 loans from that of the previous quarter of 25,800. A total number of 93,500 loans where approved for let loans during 2009, almost two thirds went to landlords looking to invest in property.
It would be nearly impossible to find a landlord that has not found the past year a gold mine when it comes to investing in property. The drop in house prices has seen thousands of property investors expanding their property portfolios and using there new found property to let out to those looking for a home. Property has proved to be a vast improvement compared to bonds and share investments during the recession.
The reason for this can be explained in two simple reasons, the first is the noticeable drop in house prices we have experienced over the past 2 years, giving property investors the chance to increase their portfolio for a discounted price. The second reason for their good fortune is the lack of mortgages that where being approved to first time property buyers. So while those with property could receive a mortgage those looking for a first time buy where rejected. This led to a large number being forced to rent property rather than buy meaning landlords could start to receive revenue from their investments.
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February 25th 2010