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Good returns in UK mortgages

Date: Thu, 06 Oct 2005

UK mortgages are offering investors a good return on their initial purchase, according to new figures.

Data from specialist buy-to-let lender Paragon Mortgages reveals that landlords are expecting the net value of their properties to increase by five per cent over the next 12 months as the housing market continues to grow.

The increase demand from tenants and the upsurge in rental yields means that the average landlord portfolio, consisting of 11.8 properties worth £1.45 million, is expected to grow by £1.52 million over the next year.

"We’re clearly now in a more buoyant phase for landlords. The market has proved more resilient than many people expected, and we’re definitely seeing a bounce back in buy-to-let," said John Heron, Paragon Mortgages’ managing director.

He added: "This is to a significant extent a result of lower financing costs following the interest rate reductions, with investors able to borrow at very competitive prices, either on a fixed or variable rate basis."


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