In July, gross mortgage lending in Britain was up 9% year-on-year according to UK Finance. The number of approvals has also increased from 75,105 in June to 77,786 in July. Mortgage interest rates have also been slashed to entice the smaller buy-to-let market, with the Post Office being the latest lender to introduce a two-year fixed rate of 1.33pc, its lowest ever according to mortgage comparison site, Moneyfacts. These low interest rates allow investors to achieve a good yield on property investment as the cost of repaying the mortgage is lower and this is offset by rental income.
Older investors may already own their own home outright. According to Census data from 2011, three quarters of those aged 65 and over own their own home, 72% of which are either three bedrooms or more. Some of these owner-occupiers may be looking for retirement income to supplement their pension and ensure a more comfortable life, and may be eager to downsize to a more manageable property. With the additional equity that can be released individuals may consider investing in more property. Bearing that option in mind, what are some high yield investment options?