My Mortgage Direct admitted it had seen an increase in the number of enquiries from new investors in the sector who were looking to take advantage of properties entering the market after repossession.
It believed that established BTL landlords were currently priced out of the market by higher interest rates squeezing existing portfolios and the path was open to those looking to enter the sector.
However, Cath Hearnden, director at My Mortgage Direct, warned against potential investors adopting an ‘enter at all costs’ attitude to BTL, with the sector no longer a place for those looking to make a quick profit.
“BTL as a money making exercise has certainly over-stretched itself since the beginning of the millennium and some people are having to accept a loss on what they hoped would be a nest egg for their future. There is still mileage in property investment but not for anyone and everyone. With analysts predicting a surge in mortgage arrears and bad debts associated with mortgages, becoming a landlord will not be quite as easy as it has been in the past.”
Gus Park, director of intermediary sales at Mortgage Express, commented: “There are more people in the market now who are good at spotting opportunities and getting the right property at the right price. Repossessions are one route for this, but they must be aware of why that property was repossessed in the first place as it might not have worked in terms of getting enough rent.”
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