BTL mortgages becoming more affordable

The availability of buy-to-let cheap mortgages is "slowly increasing", according to Property Hawk.

Chris Horne, editor at the landlord advice website, said that more home finance loans are becoming available, making the property more affordable for landlords.

In order to get the best returns resulting from a rise in house prices, he said that property buyers needed to have a medium to long-term view of the market as average values may dip in the future.

"That is why landlords are more likely to be able to go back into the market, because they are taking a longer view than people that are buying to own and then hoping to sell on," Mr Horne explained.

His comments are supported by recent finding from Mortgage Works, which revealed that cheap mortgages may be available to more landlords this year.

A study by the firm found that 51 per cent of brokers think that the number of new landlords in 2011 will increase, compared to just 24 per cent who think the number will fall.

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2011-03-25 13:03:59 © Moneyextra.com