Almost one in 10 UK adults have shown an interest in taking out a buy to let mortgage this year which indicates that the buy to let sector could see growth in 2018.
According to new research from Sainsbury’s Bank Mortgages some 9% are considering a mortgage of this type and if that happened then millions could become landlords.
Of those taking out or considering a buy to let mortgage, some 35% said a change in income had inspired them to do so, while 29% said they remain encouraged by the current opportunities to enter the buy to let market.
Some 25% revealed they were considering a buy to let mortgage after receiving an inheritance which they want to invest in property yet overall 64% don’t know what buy to let mortgages are.
When it comes to purchasing a property, over half, 51%, of potential landlords have considered buying a house, with 46% having considered purchasing new builds prior to this year. Some 46% have also considered purchasing a flat, with 44% having considered buying new build flats.
David Buxton, head of banking at Sainsbury’s Bank, said that with demand for rental properties showing no signs of slowing down, it is enhancing its range of buy to let mortgage products.
‘We’re delighted to be able to help landlords by offering competitive mortgages and advice to help them best manage their investments,’ he added.
The new range aims to support so called accidental landlords as well as established smaller portfolio landlords and are designed for those looking to purchase or remortgage, with lending being made available to individuals who hold a maximum portfolio of three buy to let mortgaged properties.
The various products are available across two and five year fixed terms. Lending is available up to £1 million with a 60% LTV, and £500,000 up to 75% LTV.