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As the availability of council house mortgages wanes, many are being forced to look into different opportunities. A lack of council house mortgage property is also forcing many into becoming renters until these properties open up. As such, the buy to let mortgage market is starting to boom, while the council house mortgage market goes through a slump.

Melanie Bien of Savills Private Finance stated, ‘Lenders will generally provide a buy-to-let loan only if the property is ready to let. But many buyers end up having to get bridging finance to tide them over until the property can be let or sold. If the development is large, making bridging finance too expensive, a good mortgage broker might be able to arrange development finance at commercial rates. Either way, it pays to be organised in advance of the auction to ensure the cash is in place.”

A local builder Iain Rose concurred, ‘It’s true financing is harder to get and more expensive, but I believe that if you can find the right property at the right price there is still good money to be made. It’s all about research. I had done my sums on the Hammersmith flat and when the bids went above £250,000 I could see profits slipping away.”

Related reading: Council House Mortgages