Should You Get a 100% Buy To Let Mortgage?
If you think you’ve lost out on the buy to let mortgage frenzy which swept through the market like a typhoon over the last few years then don’t throw in the towel yet. You can still find a few brokers doing 100% buy to let mortgage deals on the high Street but admittedly they are tougher to seek out these days.
With the housing market taking a serious tumble over the last 18 months and with things still falling quite dramatically, now is a good time to plan for the next investment. Timing your move properly could lead to making substantial profits in the medium term.
We have seen a kind of no holds barred scenario for about 10 years, at least in the UK. The housing market has seen phenomenal growth which has lulled thousands of people into a false sense of security.
People who came to the party a bit late and arranged their 100% buy to let mortgage are now feeling the pinch accutely. In fact many people are experiencing the awful negative equity situation where their unpaid mortgage has a greater value than the value of their house and rental payments do not cover the mortgage repayments.
For these unfortunates the bubble has well and truly burst! No wonder we are seeing more and more repossessions. But this was always on the cards. This unprecedented growth could not continue indefinitely and a correction has been expected for some time. Maybe it is one of the reasons we are seeing large numbers of people looking for jobs doing free online data entry jobs at home. But that’s another story!
It’s good news for those of us who are biding our time ready to snap up some top deals which will certainly come onto the market. In fact for first-time buyers the times ahead are looking quite rosy and we will no doubt see more brokers doing 100% first time mortgages when the market is ready.
So be patient, watch the market like a hawk and make your play when the time is right. Do it keenly and you’ll be sitting pretty for years to come.