Brokers have reported a surge in the number of enquiries for buy to let properties following the budget decision to increase CGT to 28% instead of the 40 to 50% that had been predicted by some experts.
In the run up to the budget the market for buy to let properties had slowed down enormously but high levels of demand are back and confidence is returning to the housing market.
New mortgage lending company, Precise Mortgages, launched two new products for the buy to let investor last week; a lifetime tracker at 4.99% and a two year tracker at 4.95%.
In recent years, the buy to let market has seen a massive decrease in the number of available products. In September 2007, there were 3,662 but by the end of June this year, the number was just 266. Lenders pulled out of the market and those who stayed in raised interest rates and fees and tightened lending criteria.
But in a sure sign that the sector really is recovering, there has been an increase of 50% in the number of buy to let loans since last September.
Whilst things are looking good for landlords in the buy to let sector, elsewhere many people are still struggling to meet their mortgage payments. This has led experts to predict an increase in equity release programs.
However, equity release may not be such a good idea. Although raising money on your house can help you cover short-term liabilities, the cost of borrowing for equity release agents is likely to increase and this will have an adverse affect on the rates available.
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