Buy_to_let Adds GBP90pm To Mortgages

Buy-to-let Adds £90pm To Mortgages

Buy-to-let has added £90pm to Mortgages payments according to a study by the National Housing and Planning Advice Unit.

The buy-to-let boom has pushed up mortgage payments for many borrowers by £90 a month.  The unit believes that the massive rise in buy-to-let over recent years has had only a moderate impact on house prices and accounts for 7 per cent of the increase in property values.  It claims that if the buy-to-let boom had not taken place, the average house price in the second quarter of 2007 would have been £169,000 rather than £183,000 and borrowers with 100 per cent mortgages would be paying £90 a month less.

Our view

Whilst Buy-to-let investors have increased the overall capital value of the property market making it difficult for some to get on the property ladder, it has also assisted the rental market by improving the quality and availability of rental property across the country and even overseas.

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