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 With all the focus on the property prices and the related mortgages, its worth noting that the flipside of the finance for property investors, (namely the rental market) is also in a state of flux. Thats good flux, by the way. Following the property correction, we have seen a gradual decline in rental demand which has depressed prices, in turn making it tougher for the lenders rental calculations to stack up.
So it is with some good cheer that we are seeing the (gradual) reverse of this in many reports.
Ian Potter, operations manager at the landlords association (ARLA), says:
"This shift in the balance of supply and demand is extremely significant for the private rented sector. It gives further evidence to suggest that the property market as a whole is getting back on its feet.
"This shift also indicates that confidence is rising among prospective tenants; it seems that people who delayed setting up home 12 months ago now feel secure enough to proceed.
Equally, those who historically have shared a rental property seem happy to set out independently".
Promising indeed, and this bodes well for a virtuous circle of increasing demand and extra supply that will follow, as more buy to let properties are purchased and successfully let out.
And, as if by magic, we have a new HMO product below that might just be able to help university towns and cities have seen the biggest increase.
TIP OF THE WEEK 1: TAKE ADVANTAGE WHILE YOU CAN
For those who have been hiding under a rock lately, two of our old favourite lenders, Advantage and Rooftop, are offering substantial discounts to clients who remortgage their deal to another lender.
Just this week we managed to negotiate write-off a record 40% of the value of a loan. Unbelievable.
TIP OF THE WEEK 2a: REGISTER THOSE TITLES NOW
An important reminder to those who are converting flats or building houses for future re-mortgage that they should register the titles ASAP; weve had a couple of examples this week where clients have been unable to pull money out because they are only just registering houses that they have long since completed building. Remember that it is 6-7 months after the registration that lenders allow you to draw out additional funds.
TIP OF THE WEEK 2b: UNLESS
Unless you have completed a build where Northern Rock will allow you to remortgage immediately, up to 50% of their valuation figure.
As always, call one of our advisors today for more information 01424 205 373
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