Quality Speaks For Itself

UK Buy to Let Financing still available

Posted in Financing by Ash on November 21st, 2008 07:57am

There is a common view that the Buy to Let market in the UK has died and that the principle reason for this is a lack of appetite amongst banks to provide mortgage finance. Whilst it is correct that a number of banks have withdrawn from the market, Mortgage Express, who were one of the largest providers have withdrawn from this market completely, there are still several lenders that are active in the market.

Rates may be slightly higher and Loan to Values (LTV) may be slightly lower but for deals that are well priced financing is still available. If you assume finance of 65-70% and an interest rate of 6.5%-7% you will not be disappointed.

Whilst the figures above may not at first seem appealing, as Dipen has noted in his blog yesterday this my be a once in a generation opportunity to acquire capital assets at sensible prices thereby allowing any acquisition to be cash positive even at current interest rates. The finance available at present should be seen as “bridging finance” until finance markets return to more normal levels and when looked at in this way the investment decisions that you make now will start to look very astute.