Insurance News Archive

Current buy-to-let market 'should be left to professionals'

Problems trying to obtain a buy-to-let mortgage mean the current market should be left to professional investors, it has been claimed.

Deposits are very difficult to acquire at present and a down payment of at least 25 per cent will be required to get such a mortgage, according to Lee Grandin, the managing director of Landlord Mortgages.

He said now is not a good time to buy if prices will go down after buying and advised investors wait until they are offered 40 per cent discount on properties.

Mr Grandin explained while landlords will buy cheap property as it is under market value anyway, investors are best to hold off as they could lose out if prices are undercut a further 20 per cent in the next year.

He added: "It depends on what kind of discount you are getting at this moment in time and I would say that a 15 to 20 per cent discount is not enough."

Meanwhile, Nationwide has revealed house prices dropped by 2.5 per cent in May.

It is the biggest drop in the 17 years it has conducted its house price survey.

29 May 2008