This increasing demand for rental property is creating opportunities for buy to let investors BUT – just as there is a shortage of residential mortgages – there is also a shortage of buy to let mortgages.
There are far fewer buy to let lenders than there were pre-credit crunch and those remaining in the market have far stricter lending criteria.
Lenders also require a 25% deposit for a buy to let mortgage – a far cry from the days when only a 10% deposit was required.
Stricter lending criteria and 25% deposits means that fewer potential investors are able to purchase buy to let properties – which means that increasing rental demand is not being offset by increasing new buy to let investors providing the required properties.
But – that is very good news if you have a good credit record and sufficient funds to cover 25% deposits. Because that means you not only qualify for a buy to let mortgage – but you are also investing at a time when rental demand is at a peak.
And – if you invest via our Property Investment Service – we give you this cast iron rental guarantee … If we don’t tenant your property by the time your first mortgage payment is due – normally 28 days after purchase completion – we will pay that mortgage payment for you.