Buy-to-let investors advised to consider interest-only mortgages
Buy-to-let investors advised to consider interest-only mortgages
8th August 2007
Interest-only mortgages are the "only way" for investors to have a self-funding property, experts have stated.
According
to Alpha Financial Management, such mortgages allow potential investors
to purchase a property without having to put any of their own income
into the deal.
With rental yields steadily increasing across the
country and the risk of negative equity seen by the majority of market
observers to be minimal, interest-only deals represent the best way of
making money from the buy-to-let sector, the firm concluded.
Stephen
Lee, director of Alpha Financial Management, said: "For people who want
to buy property as an investment - unless they want to put some of
their own income into the mortgage repayments - an interest-free
[mortgage] is the only way to actually have a self-funding property."
A
recent report from Landlord Mortgages revealed that the landlords of
student accommodation benefit from the best rental yields.
In
comparison to the national average return for buy-to-let property of
just under six per cent, student housing currently offers returns of
6.95 per cent on average.
© 7BestInvest Ltd 2007.