The British property marketing is booming at the moment with many eagerly applying for buy to let mortgages. Landlord loans have become extremely popular as a means of investment for aspiring property owners who may be retiring in a few years. On the other hand, those finding it difficult to get into the property market due to the drastic property increases have turned to shared ownership as a means to get a foot in the door. It’s clear that the two are suited to two different demographics.
Buy To Let
This is a highly attractive option for buyers, but without looking at the statistics and areas many property owners are set to lose money in the long-run. The buy to let market has forced many first-time property purchasers into private rentals because the mortgages are too high. At this stage the buy to let market is a win-win situation for investors who have done their homework and research. Buy to let properties are extremely popular amongst the older generation who are able to afford the increased prices, but the rentals are too expensive for those who can’t afford the expensive mortgages.
This is the perfect scheme for first-time buyers who don’t want to be forced into the private rental sector and pay the exorbitant rental prices set by landlords. Shared ownership mortgages are steadily increasing as the younger generation want to find their feet in a market they can’t get a grip on. Buy to let may not be readily available to the younger market, but it means that as they use the staircasing scheme they will eventually own their home, just without the pocket-battering financial demands.
Shared Ownership mortgages and landlord loans are easier to apply for with the ease in restrictions by banking institutions. Many banks have dropped their interest rates to unbelievable lows to entice buyers into the fold. Many are jumping on the bandwagon because many of the rates will never be repeated again. It seems that there is a clear divide between who can afford what and why. As buy to let continues to climb, the younger generation will continue to look at shared ownership as their most viable options to assist them with secure long-term investments.