Buy-to-let landlords are increasingly buying cheaper properties with higher yields, Mortgages for Business found in its Complex Buy to Let Index research.
Fresh analysis of mortgages arranged via the lender during the second quarter of this year found that all types of buy-to-let properties acquired during Q2 had lower values compared with recent quarters, while also providing betters returns, with both HMO and multi-unit purchases achieving average yields of more than 10%. By comparison, these properties achieved yields of just 8.7% and 7.9% respectively when remortgage transactions were included.
Steve Olejnik, chief operating officer of Mortgages for Business, said: “Landlords have been selective with their purchases this quarter, choosing properties that maximise their income with minimal investment.
Join the conversation
Be the first to comment (please use the comment box below)
Please login to comment