Buy to let mortgage market suffering
Mon, 17 Aug 2009
A new report released by the Council of Mortgage Lenders has shown decline of the buy-to-let market since the credit crunch began.
Those looking to finance a property for business purposes have been stone-walled thanks to restricted lending from mortgage brokers due to the recession. Figures within the report from the CML reveal that the second quarter of this year saw a further four per cent decline.
Buy-to-let remortgaging was down some 15% while standard home purchase loans dipped only 5%, the research found.
Arrears on buy-to-let mortgages were improved in the period however, with figures reduced by 17 per cent in the second three months of the year.
Rob Thomas, senior policy adviser at Council of Mortgage Lenders, said: "So long as properties have paying tenants, landlords now have much greater ability to service mortgage payments and we expect arrears to continue to fall as landlords are helped by lower interest ratesb ."
A recent survey by the Young Group found that only 24 per cent of those with a buy-to-let mortgage said they were checking the market to make sure they had a good deal.