By Steve Pymm of Pymm & Co in Norwich
With interest rates on your savings at an all time low, investors are now looking to alternative asset classes to achieve better returns. With the recent fall in house prices in the local area and the high demand for rented accommodation, buy to let investment is becoming a viable option.
The north of the city of Norwich is very popular with buy to let investors at present. This area is in easy walking distance to the city centre and compared to say the golden triangle has competitively priced terrace house properties that have a high demand to let. For those of you out there who are existing buy to let landlords, with a buy to let mortgage, you are probably well aware that over the last twenty four months the interest rates available for re-mortgage buy to let loans have not been very competitive to say the least and if, recently, you were thinking of investing in the buy to let market, on top of uncompetitive interest rates, the buy to let lenders setup fees have also been somewhat off-putting, with some lenders charging thousands of pounds rather than hundreds, which, quite frankly, is money for old rope. However, there seems to be light at the end of the tunnel. The latest CML buy to let lending figures still show a subdued market, but one that apparently is now gathering momentum. Both lending in value and the number of loans applied for were the highest they have been since the last quarter of 2008, apart from the unusual situation of the final quarter of 2009 which covered the end of the stamp duty holiday. Encouragingly, new buy to let lenders are now also appearing on the market, increasing the competition, and giving the investor more choice, often with improved rates. There are also a handful of lenders that are now offering reasonable setup fees which can only improve confidence in the buy to let market in general.
*You can contact Steve Pymm on 01603 305805.