Mortgage famine and withdrawal of the best mortgage deals improves rental yield.
Eurozone crisis is creating a mortgage famine as lenders withdraw their best mortgage deals for residential property purchase and remortgage.
The Royal Institution of Chartered Surveyors has advised that the current UK mortgage famine is not just affecting first time property buyers. More middle-aged households are also being forced to remain as tenants which is pushing rents up even higher.
As UK lenders tighten their criteria and withdraw more of their best mortgage deals to control demand and manage their profits, finding a competitive deal becomes even harder.
As more people are stuck in rental accommodation rents are rising. RICS figure reveal that average rents have grown steadily since 2009 as lenders demand larger deposits before they will consider a would-be buyer for a mortgage. As a result the average age of a first time property buyer has increased to 37.
With rents steadily rising, gross rental yields have also continued to grow. The rental market remains buoyant and profitable for investor landlords who are able to cash in on the rising number of people who are unable to buy and are therefore forced to rent.
It is predicted that tenant demand could continue to outpace supply which means it is likely rents will continue to rise.
Whether you are looking to climb on the property ladder and would like to compare the best mortgage deals that currently remain on offer, or are an investment landlord looking for a buy to let mortgage we recommend that you contact Deal Direct today.
Deal Direct can source the most competitive deal on offer.
Call one of our skilled brokers today.