A website that covers financial developments in the United Kingdom reports that last month, over sixty per cent of investment home purchases (known as buy to let) were effected by cash, with no loans. In 2007, this percentage was 41. A sidebar lists the percentages by region. The paper said this may be due to decrease in the availability of loans for this type of purchase. A professional association warns that rents could go up as the owners cut down on the supply of stock.
Key Takeaways:
- Real estate investors are paying cash to purchase rent-to-let properties more now than in the past.
- Finding and getting a mortgage for an investment property has been more difficult in recent years.
- Mortgage lenders are looking for new ways to help investors get mortgages for their buy-to-let properties, including low interest rates with longer pay back times.
“Last month, 61 per cent of Britain’s buy-to-let purchases were made mortgage-free, according to lettings agent Countrywide.”