Buy-to-Let - It's all about the deposit
Alaine Bradbury, Estates Manager, PAD4U Letting Agents Manchester writes:
Many landlords feel it’s a good time to be investing and snapping up those auction deals, however the amount of deposit or equity you can muster is a key factor for many of our landlords as to whether they can get hold of more properties.
Of course, in a more competitive market many of our landlords would prefer to tie up less capital on their investment, and increase their total return. However big deposits are the name of the game in 2009.
Looking back In 2007 when I first started in lettings most minimum deposits were around 15% and a handful of lenders allowed lots of long term clients & borrowers to put just 10% down. Not any more!!!!
On average most buy-to – let borrowers need to put down at least 25% and most of the best deals out at the moment are reserved for those with at least 40% upfront. There is a slight difference in the residential market with 25% being enough for some of the best rates.
But don’t let this put you off!!!, there are lots of excellent properties out there to entice you into extending your portfolio.
If you are trying to build your portfolio, you may benefit from advice from our Independent Mortgage Advisor who will for no fee look across the market to find the most competitive deals for you. More than ever it’s imperative you investigate all finance options.
PAD4U recently entered a number of properties into the first Pattinsons Action in Manchester, a number of properties PAD4U entered were sold. If you are interested in attending the next auction please let us know by email.