Friday 1st June 2007
Recent interest rate rises have tipped the balance in favour of buy-to-let investors, it has been claimed.
The Council of Mortgage Lenders (CML) suggests that affordability concerns may see more Britons choosing to rent, offsetting the higher borrowing costs faced by buy-to-let customers.
However, the council advises that there could still be a slowing in buy-to-let lending in light of the recent rate rises.
Bernard Clarke, spokesperson for the CML, said: "Interest rates have risen and clearly that will lead borrowers to continue to look hard at the balance between rent and borrowing costs."
"We continue to see it as a strong sector driven by very strong fundamentals," he added.
His comments follow the publication of figures by Bradford & Bingley which show 96 per cent of landlords expect to expand or maintain their property portfolios within the next six months.
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