Buy-to-let mortgages are hot news in Birmingham, as the number of landlords looking for a better return on their investments soars.
The city has shot to second place for the purchase of buy-to-let properties, according to recently released data by the Council of Mortgage Lenders (CML).
Experts believe that the sharp increase is due to the HS2 London line, which has resulted in Birmingham moving from seventh place in the table in 2014, to second place this year, with London claiming the first place.
Other studies indicate that renting is becoming an increasingly popular option for landlords, especially in Birmingham. Although rental income is much higher in London, the returns for landlords in Birmingham are better than in other cities. While the average rent in Birmingham is £766, the rent in Nottingham is £639, according to a study conducted by Barclays Mortgages.
The study analysed the findings of 5,000 customers who had purchased a property for rental purposes in 2014 or this year. Barclays also commissioned a study of 500 landlords and discovered that more than one property was owned by three quarters of those who responded. The survey revealed that this was more likely to be the case in Bradford or Glasgow.
Data from CML revealed that lending for buy-to-let purchases had increased by 22% in May 2015, compared with the previous year. Obtaining a mortgage for a buy-to-let property can be complex. Mortgage advisers may want to consider CeMAP training to ensure they are able to provide advice to clients looking for a mortgage.