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Confident landlords plan porfolio expansion

While the majority of investors (63%) will need to remortgage existing properties to fund their expansion, a similar proportion (62%), believe lenders are not doing enough to support landlords and property investors. The results come from Mortgages for Business’ inaugural quarterly Property Investor Survey in which 185 landlords and investors were surveyed.

One in five (20%) feel that lenders should reduce their fees in order to support property investors. 18% believe lenders should increase LTVs and 15% feel that lenders should grow the number of case by case lending decisions rather than rely on computers and credit scores.

While four fifths (81%) of property investors intend on investing in vanilla buy-to-let property over the next six months, 22% plan on expanding their portfolios with Houses in Multiple Occupation (HMO) and 15% with Multi-unit Freehold Blocks (MUFB), both of which provide higher average yields for investors. 14% intend on investing in commercial or semi-commercial property which also average higher yields than vanilla investments.

David Whittaker, managing director at Mortgages for Business, commented: “Although overall mortgage and lending to first time buyers is finally starting to increase, landlords remain confident about the future of the private rental market and plan to expand their portfolios over the coming months. However, more and more investors are exploring which options will give them the best returns on their investment. While vanilla buy to let properties remain popular, more complex deals are offering higher yields on average and are growing in popularity, particularly because of the shortage of housing stock currently on the market.”

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  1. Roger Bird says:

    Im currently expanding my portfolio but feel that the banks and buy to let mortgages are becoming very difficult to obtain, on my recent purchase I have gone from a 25% deposit to now having to put down 35%. The rate started at 2.99% with a £3k fee and has now gone to 5.7% due to the property been clased has a light refurbishment. I’m in the business to renovate and refurbish properties why can’t the people who underwrite the mortgages put some common sense into the equation when buying properties at 40% BMV!! Is it me or they just trying to take a slice of the profits! Anyone who wants to invest in Greenbird properties with common sence and liquid cash get in touch, cash is king and it would mean that we don’t have to wait 7 weeks to go through the buy to let mortgage slow system o and surveyors reports that tells us what we already know!