New breed of silver fox investor snapping up buy to let
|Thursday, 10 January 2013|
As Countdown presenter Nick Hewer reveals he is investing in buy to let to fund his old age, leading buy to let website, buytoletmortgages.co.uk says older investors are looking at BTL to boost their pension pot.
The days of the sharp-suited, young landlord cutting a swathe through the buy to let market are long gone, today it more likely to be cash-rich, silver foxes building up their property empire.
Lord Sugars right-hand man on the BBCҒs Apprentice and Countdown presenter Nick Hewer has revealed he is investing in buy to let to avoid being a financial burden on his kids and he is not alone says leading but to let website, buytoletmortgages.co.uk .
The buy to let specialist has noted a significant rise in the number of mortgage applications from older, first time BTL borrowers.
Buy-to-let is now a popular choice among the older generation who are fed up with stagnant house prices and want to move but donђt want to sell their homes, says Lee Grandin of buytoletmortgages.co.uk .
We have seen a rise in the number of forty and fifty-something investors і a generation that is cash rich and choosing to let rather than sell their homes. These investors then use the released equity as the deposit to buy another property, or opt to rent their new home instead.
According to buytoletmortgages.co.uk; the significant increase in house prices over the last 15 years has led people to view their property as an asset rather than a home.
"Those who have paid off a sizeable chunk from their mortgage prefer to rent out their home rather than sell it, adds Grandin. Pension funds have performed terribly in recent years; they are complex and not easily understood. Property on the other hand is a straight-forward investment; it goes up and it goes down in price and is a much more tangible asset."
Buytoletmortgages.co.uk urges anyone considering letting out their home to ensure they have a minimum income of 25,000 a year.
A BTL mortgage is also based on rental income. Rental income from the property must be at least 125 per cent of the monthly mortgage payment. So if the mortgage repayment is ã1,000 you need to be getting at least 1,250 a month.
"You'll also need a deposit of at least 15 per cent of the property's value and more likely 25 per cent, he adds."
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