| The buy to let sector is known to be one of the | | | | previous six months. |
| famous mortgage options for any potential investor | | | | Investors are happy with the buy to let sector and |
| in the UK; also known to be the fastest growing | | | | feel it will only increase over the years and never |
| areas of investment. Current landlords and potential | | | | decrease. |
| investors have benefited drastically over the years. It | | | | Why are buy-to-let mortgages becoming more |
| is quite a straightforward process: Landlords buy a | | | | popular |
| property which initially gets let to tenants, either on a | | | | A first time buyer average age in Britain is now 34, |
| long-term or a short-term basis, eventually at the | | | | up from 29 in 1974. Subsequently, the pile of |
| very least, cover the mortgage payments and | | | | potential tenants has increased considerably, thus |
| theoretically generate a regular income. | | | | further fuelling the demand for high quality rental |
| The buy to let sector has a good reputation in terms | | | | accommodation. |
| of a long-term investment. Buy-to-let boosted more | | | | Due to more students enrolling for university, it has |
| during the early 1990's and was coined by the | | | | resulted in the student rental market to increase |
| Association of Residential Letting Agents. This type | | | | dramatically, buy to let investors are simply benefiting |
| of lending, however, had been around since the early | | | | from student accommodation and finding tenants is |
| 1980s. | | | | becoming more easier in most areas. |
| The buy to let mortgage market is now thought to | | | | Single adult households and higher divorce rates |
| be one of the essential driving forces in Britain's | | | | would lead to demand for rental properties, it is likely |
| economy. During the first quarter of 2006, mortgage | | | | to continue to increase also foreign people entering |
| lenders approved a staggering 152,500 new buy to | | | | the UK, it has only caused the buy to let market to |
| let mortgages, this an increase of 17 percent on the | | | | expand. |