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Are buy-to-let mortgages still profitable?


Over 70 per cent of buy to let investors explained that towards the end of 2008, house prices could potentially increase by at least 3 per cent.

Alliance and Leicester's survey showed that 43 per cent of professional buy-to-let landlords could see a profitable future return.

Director of intermediary sales, Mark Blackwell, currently at Alliance and Leicester commented: "Investing in buy-to-let properties should be seen as a long-term investment. Despite this, brokers expect nearly 80 per cent of landlords to make a positive return on their investment this year. The buy-to-let market will "continue to be a significant part of the overall housing market" in 2008.

The brokers found that the largest problems about the buy-to-let market was fluctuating base rate (32 per cent) and decreasing house prices (27 per cent).

Research by Birmingham Midshires showed that buy-to-let landlords experienced an average return on their mortgage deal of 16.3 per cent through 2007 period. A vast majority of buy to let investors feel that in order to see a good return, all property must be left on rent for a long period of time.

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