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The Ultimate Guide For Buy-To-Let Mortgages In 2022

10 Mar

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There is no denying that the pandemic has been detrimental to many industries across the country in the last two years. 

It has however created a dramatic rise in activity within the property market over the last year, with UK Finance figures indicating that the Buy-To-Let purchase rates had increased to a whopping 18 billion pounds. In addition to this, the property market saw a huge surge (83%) for Buy-To-Let mortgage lending rates in 2021 from 2020. 

With that being said, however, UK Finance has predicted reduced gross activity this year, with the potential reduction incorporating Buy-To-Lets in 2022. So, are Buy-To-Lets still worth the investment? 

Are Buy-To-Lets Still Worth It In 2022? 

With many returning back to working in the big cities, 2022 will likely see increased demand from workers looking for both short and long-term tenancy agreements. If you’re a landlord keen to build up your investment portfolio, or a first-time buyer looking for a long-term return, a Buy-To-Let is a great option with high demand for tenants.  

Do you want to get ahead of the curve and take advantage of the market while it’s still looking healthy? Read what’s on the agenda when considering a Buy-To-Let In 2022:

  • Cheap Buy-To-Let Mortgages 
  • Utilising Lower Interest Rates Now
  • Top Buy-To-Let Locations 
  • ‘Green/Eco-Friendly’ Mortgages 

Cheap Buy-To-Let Mortgages

A buy-to-let mortgage is a specific type of mortgage given by banks to people who are looking to make investments in property by “letting” the property out, rather than to live in themselves.  

Increased demand for a range of different properties during the pandemic, such as holiday lets and HMOs, has resulted in mortgage lenders competing with each other by lowering their rates in an attempt to attract more people looking to invest in the property market. This has created a wave of cheap Buy-To-Let mortgages which will be a hit this year, especially amongst first-time buyers.  

Utilising Lower Interest Rates Now

With the possibility of further interest rate rises by the Bank Of England, many landlords will need to assess their portfolios and consider whether a fixed-rate mortgage might be more appealing. With five-year fixed rates still sitting at an attractive level, we recommend utilising these lower interest rates while they’re still available. 

Top Buy-To-Let Locations

According to Aldermore Bank’s buy-to-let city tracker, Bristol overtook Manchester in 2021 as the best location for Buy-To-Let investments. Other top locations to start your property search include Oxford, Cambridge, Manchester, Luton, and London.

Green / Eco-Friendly Mortgages 

2022 is also set to see an increase in green and eco-friendly products coming to the market, such as mortgages that offer perks for homes with a good energy efficiency rating. By 2025, all landlords will be required to achieve at least a C EPC rating on new tenancies; lenders are therefore likely to offer better mortgages to landlords for going green ahead of this. 

Should I Get A Buy-To-Let In 2022?

Despite the predicted reduction in activity from UK Finance figures, the prognosis for lending and current ongoing mortgages is still set to be higher than the statistics in 2020, indicating a more stable return to activity overall. Buy-To-Lets in 2022 are set to grow in demand and will be more accessible than ever, with lenders competing on price and being more lenient when it comes to lending criteria.

Have a question about whether a Buy-To-Let mortgage is the right option for you? Get in touch with one of our mortgage experts today.

Contact an Expert today

Have a question about whether a Buy-To-Let mortgage is the right option for you? Get in touch with one of our mortgage experts today.

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Get in touch today