08 | 10 | 15

HONG KONG PHOOEY

Posted by: michaelcooper

The Chancellors much trumpeted changes to pension regulations mean many can now choose to take cash from their pension pot rather than purchase an annuity.  Maybe some will buy a Lamborghini (or more modestly a new flat-screen TV) but others may perhaps look at investing in Buy to Let (BTL).  The CML (Council of Mortgage Lenders) recently announced that the private rented sector had doubled in size over the past 12 years with outstanding (BTL) mortgage liabilities an eye watering £200bn – apparently equivalent in size to the whole of Hong Kong’s economy!  Whether or not you agree with the social changes that increased BTL brings it is impossible to ignore the fact that BTL is seeing a stronger recovery than the wider market. Some would say this is because BTL mortgages are typically advanced on an interest only basis. With the Bank of England expressing concern will there be a limited window of opportunity before some of the thousand or so BTL mortgage deals on offer start getting the chop?

Back to news and opinion listing

Cookies on this website
By continuing to use this website you are agreeing to our use of cookies.