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UK mortgages fund property investments

Date: Thu, 16 Feb 2006

UK mortgages are helping to fund an increasing number of property investments.

New figures from buy-to-let lender Mortgage Trust show that many investors are turning to property to help boost their income, whilst current landlords are also taking out further UK mortgages to help expand their portfolio.

The growing confidence in the housing market alongside continued low interest rates means that 14 per cent of landlords are planning to take on new properties over the next 12 months. A total of 83 per cent of survey respondents also predict that house prices are set to rise by at least two per cent during 2006 – a figure that will help to boost demand for UK mortgages.

Nicola Severn, marketing manager at Mortgage Trust, said: "By emphasising the importance of capital return on investment, it is clear that buy-to-let landlords are adopting a sensible long-term approach to their portfolios."

She added: "With favourable borrowing conditions, healthy rental demand and an expectation of steady house price rises among investors, the outlook for the buy-to-let sector is very favourable indeed."


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