House prices are dropping

House prices are dropping around the UK right now thanks to the credit crunch hangover. People cannot afford to buy and they can't afford to sell, which means the market is slipping - recent figures reveal that on average, house prices in the UK have dropped by as much as 2.4%* - that's thousands of pounds that you could be saving if you enter into the buy-to-let market. And with some analysts predicting a slow turn around by the end of the year, cheap buy-to-let homes are not going to be around for long.

Repossessions are rising

It's a sad fact but more and more Brits are defaulting on their mortgages, meaning not only are there going to be more displaced people out there looking for a buy-to-let rental property, but it also means there are more cheap homes on the market. Many potential landlords use these opportunities to find a cheap second property at home auctions. Lenders need to cover their loses as quickly as possible after a repossession, so they auction off the home for a bargain. Which means you could find a cheap way into the buy-to-let market.

Mortgage rates are on the up

This may seem like a strange reason to be considering investing in a buy-to-let mortgage right now, but rising mortgage rates means less people shying away from the rental sector. Reports have shown that many Brits, as many as one in 10, have had to scrap plans for their own home**. So more tenant potential means a better guarantee of monthly rents and a better guarantee of buy-to-let profits - two things no landlord would ever turn down.

Rentals are higher than ever

Thanks to more people shying from buying their own home, or not being able to keep hold of their mortgage, buy-to-let rentals are on the up. The latest figures show that rentals have now risen nearly 14% over the last year to stand at £12,048 in April 2008*** - that's over £1000 a month rentals, which means you can be sure to meet your buy-to-let mortgage repayments and some. Being a successful landlord means being sure of profits - something that you can be confident of right now.

The buy-to-let sector is still booming

Latest figures from the Council of Mortgage Lenders have revealed that buy-to-let mortgages counted for nearly 10% of the whole UK mortgage market**** - which mean there are a lot of great deals out there and a lot of competition for your business. With this n mind, you are sure to be able to find a cheap deal for your rental property. So if you think the time is really now for buy-to-let success, talk to your broker and see what's out there. If you don't act now, you might regret it.

*Halifax House Price Index, June 2008

**Moneysupermarket.com, May 2008

***Paragon Mortgages, May 2008

****Council of Mortgage Lenders, March 2008