Buy to let collapse favours professional property investors
News Category: Industry News
Published: 01-Oct-2008
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Professional property investors will have less competition in months to come from buy to let landlords when looking to take advantage of falling house prices, it has been predicted, after lenders dramatically cut back on financing for the deals.
On Monday alone the number of buy to let mortgage products available fell from 662 to 481 - representing a drop of 27 per cent.
This will mean that amateur investors are more likely to be denied access to mortgage funding, with the result being a fall in competition for acquisitions for established property investors.
The decision to pull the products followed a rise in the London Inter-bank Offer Rate (Libor) in the wake of Bradford & Bingley being brought under government control.
Michelle Slade, analyst at Moneyfacts.co.uk, said: "The buy-to-let sector has been hardest hit since the turmoil began with 85 per cent of products being withdrawn in a year, but residential mortgages are not far behind with a loss of 60 per cent of products."
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