Buy To Let Investors Ousting First Time Buyers As Property Market Drivers | MoneyHighStreet.com

Buy To Let Investors Ousting First Time Buyers As Property Market Drivers | MoneyHighStreet.com

Buy to let investors are replacing first time buyers as the driving force behind the property market as mortgage lenders favour these more experienced borrowers who also have larger deposits.

There is still a strong risk adversity amongst mortgage providers resulting in a move towards lending to buy to let investors rather than first time buyers.

Buy to let investors generally have large cash deposits and a good mortgage repayment history, whereas first time buyers are mostly looking for 90% LTV mortgages and have little or no mortgage histories.

Consequently it is the buy to let investor who is seen as the better prospect by risk adverse lenders, and this is fuelling a demand for properties from existing and prospective landlords.

“As a result, the buy to let sector is recovering at a remarkable rate, as investors are drawn back by the need for a long-term, low-risk investment for their cash.”, says Stuart Law, Chief Executive of property investment experts, Assetz.