A good year ahead for those with buy to let mortgages

Published: April 29, 2008

People who have taken out buy-to-let mortgages are set for a good year in 2008.

That is according to The Mortgage Business Company (TMBC), which said that increased tenant demand will keep the buy-to-let market buoyant.

There is no denying that the credit crunch has affected buy-to-let mortgages but first-time buyers have been hit hardest.

It means that many potential new buyers are turning to rented accommodation instead, spelling good news for people with buy-to-let mortgages.

"The key factors driving the buy-to-let market are still strong. There are rising levels of tenant demand as people wait to see what happens in the housing market before purchasing," commented a spokesperson for TMBC.

"Rents are rising as a result and this year could present some great opportunities for landlords looking to expand their portfolios.

"The current slow down in the housing market may enable landlords to drive genuine discounts off the true market value of properties and snap up some bargains," she continued.

People with buy-to-let mortgages were boosted by the Bank of England's decision to cut the base rate of interest in April.