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&#39No fast bucks to be made in buy-to-let market&#39

Buy to let is not the “fast buck” market many borrowers think it is and new landlords must research the market properly before making a purchase, warns UCB Home Loans.

According to the lender, the buy-to-let market grew by a massive 62 per cent last year, with 184,900 buy-to-let mortgages outstanding at the end of December 2001.

Of these, more than 41,000 were taken out in the last six months of the year.

UCB says many of these loans were taken out by amateur landlords looking to cash in on rapidly rising house prices. But the lender is predicting the market will begin to calm down in 2003, with fewer new people entering the market as landlords.

Managing director Charles Reed says: “As house prices shoot upwards, the rental market is having a less favourable time. With the number of landlords increasing as buy-to-let becomes more popular, some areas have seen falling rents and an increase in the length of void periods, during which landlords receive no rent but still have to pay the mortgage.”

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Preparing for the changes to the pensions market

As more and more providers start to reveal their stance on the charge cap and removal of commission and active member discount pricing, we thought it would be worthwhile to look at what these are, and the steps businesses should be taking to prepare for this.

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