Wealthy homeowners in the UK may opt for buy to let mortgages in a bid to generate money through renting out property to tenants.
Lee Grandin, director at Landlord Mortgages, has noted this market can prove highly attractive to those who have the means to put down a deposit.
Mr Grandin explained this initial payment can be significant, essentially ruling out any would-be purchasers who are not asset-rich.
The industry figure observed these deals are competitive at present, with a greater number of options coming on to the market in the last 12 months.
He said current rates are failing to deter individuals for the time being as a result of the yields being so positive, adding: “It is just a case of whether they do physically have enough funds to purchase a property because the deposits are quite substantial.”
His comments come in response to new findings from Hometrack, which showed the UK has divided into two separate rental markets.
According to the study, London differs markedly from the rest of the UK, with the city being the only region that did not witness lower rental growth in 2011 than it did in 2010.
