More Buy To Let Mortgage Products For Companies
There are many landlords that operate under the structure of a sole trader but there are also some that are set up as partnerships and limited companies. According to information provided by Mortgages for Business Ltd, there has been an increase in the number of buy to let mortgage products that are geared towards limited companies in the last 3 months or so.
Apparently, according to the above companies Complex Buy to let Index for Q1 of 2016, in the first quarter of this year there was an average of 1,105 buy to let mortgage products available to all types of landlords with 33 lenders providing the products whereas back in the last quarter of 2015 there were 963 such products provided by the same number of lenders. This is a significant increase and is perhaps a reflection of how keen some lenders are to be in the buy to let mortgage sector.
The above index also provides some other interesting data such as the average yield on different types of investment properties that are rented out. In the first quarter of 2016, Vanilla buy to let properties produced an average yield of 5.5% pa, Multi-unit freehold blocks produced an average yield of 7.8% pa, Semi-commercial properties produced an average yield of 8.1% pa and Houses in multiple occupation produced an average yield of 10.2% pa.
Experienced landlords and those considering entering this type of business for the first time may find the above information useful along with no doubt lots of other research that they carry out when deciding which sector of investment properties to get into.
It is pleasing to read that there are more buy to let mortgage products that are being made available that are suited to limited companies. It will be interesting to see what buy to let mortgage lenders do throughout the rest of the year in respect of their product ranges. Will we see more lenders enter this mortgage lending sector as it is interesting that according to the above index there have been 33 lenders in this sector for the last 3 quarters ( Q1 2016, Q4 2015, Q3 2015). Back in Q2 2015 there were 32 such lenders.