The number of home loans in the UK has seen an increase in the third quarter of 2011, according to the Council of Mortgage Lenders. This growth is encouraging for the market.
Significant growth was revealed by the published data and a reported 16% rise was seen in loans for buy-to-let property. A total 34,500 buy to let loans are approximated to have been advanced in the third quarter; this figure is an increase from 29,700 – the figure recorded in the second quarter.
The supply and choice in the current rental market has improved from the weakened levels seen in 2009. With tenant demand remaining strong in the rental sector also, some buy to let landlords have been seen to increase their portfolios.
Mortgage loans can be sourced directly from the lender or indirectly from a mortgage broker. Brokers can recommend a specific mortgage for you and speed up the process of finding the right deal; this option may be preferential if you’d rather someone else look around for a mortgage for you than spend time shopping around yourself. Examples of direct lenders include banks, building societies and specialist mortgage lenders.
Repayment and interest only are the two main repayment options when taking on a mortgage. The repayment option covers both the loan and the interest whilst the interest only option pays off the interest alone. There are a number of interest rate options as well; tracker rates change in line with the Bank of England rates, fixed rates are fixed for a set number of years and capped rates have a variable interest rate with a ceiling so payments do not go above a certain percentage.
At any one time there are a multitude of mortgage options so be sure to find one that suits your needs and for which you are able to maintain the monthly repayments. Be sure also, to check out current mortgage regulation and any changes to legislation that may affect your choice when deciding on the best repayment option.
View buyer and seller information alongside our current property listings online. Your internet estate agent can also direct you to our additional services including mortgage advisers, conveyancing, removals and valuations.
