Mortgage rates 'improving for landlords'

Mortgage rates for those looking at investing in buy-to-let properties are improving, according to an industry expert.

Perran Cooke, mortgage consultant at Countrywide, said that there are a lot more of this type of buyer coming into the market and they are particularly eyeing up buildings in city centres.

He added that while arrangement fees are still high, the fixed rates are becoming a lot longer, which is helping the market.

"You have got to put down normally 20 to 25 per cent – or 30 per cent in some circumstances. I am finding that in the city centre of Manchester, a lot of people are buying around the £100,000 mark and putting around £25,000 to £30,000 down, so the rental yield is still nice and strong," Mr Cooke advised.

He went on to say that buyers need to consider whether the property they are after is going to be rentable and to whether it will be targeted at students or professionals.

Mr Cooke's words came after the National Landlords Association's director of operations, Richard Price, said that any mortgages coming on to the market now need to be sustainable and have consideration for the longer-term.

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2011-07-05 15:12:10 © Moneyextra.com