There has been a lot of media comment recently about the high price of renting compared to paying a mortgage. According to Halifax, if you took out a new mortgage in the second half of 2011 your mortgage repayments would be at a record low as a proportion of disposable earnings. You would have to go back fourteen years to see repayments at such a low percentage of earnings.
This is very good news for those would be house buyers who have managed to find a deposit and can secure a loan. Perhaps landlord insurance clients might be worried that the buy to let business is about to turn down if more people are now looking to buy rather than rent? Of course, if you are a landlord with no mortgage or a loan at a low interest rate you are probably not too worried. In fact you may be thinking that if more people try to buy houses this may help the capital value of your buy to let portfolio.
Purchasers looking for a long term fixed rate are being targeted by Norwich and Peterborough Building Society who are offering a ten year fixed rate mortgage. This is a good example of the market reacting to consumers’ needs and may well encourage some people to start thinking about buying their own home. Always make sure you obtain professional advice before you enter into any major transaction like a mortgage.
If you are a property owner looking for buy to let insurance contact click4quote.