Considering the current UK rental demand and a potential recession, how does the ability to leverage a property investment (e.g., achieving 75% LTV) using a buy-to-let mortgage compare against the leveraging options (e.g., margin lending, CFDs) available for stock market investments in terms of risk, cost, and potential for amplified returns for an experienced investor?
Quick Answer
Leveraging property via BTL mortgages (up to 75% LTV) offers more stable, asset-backed returns than highly volatile stock market options like CFDs, despite higher transaction costs like the 5% additional dwelling SDLT.
About This Topic
Compare BTL mortgage leverage (75% LTV; rates 5.0-6.5%) for property vs. stock market leverage (CFDs). Understand risks, costs (e.g., 5% SDLT surcharge), and amplified returns.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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