Buy-to-let mortgage finance 'contracts'

News Category: Industry News

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The range of buy-to-let mortgage finance available for investors in the residential lettings sector has been significantly squeezed following the impact of the credit crunch, research has shown.

Statistics published by price comparison site Moneyfacts.co.uk have revealed that the number of buy-to-let deals on the market has fallen from 3,662 in August 2007 to a level of 265.

Furthermore, ten per cent and 15 per cent deals, which used to make up just over 60 per cent of the market, are no longer available, the study showed.

Moneyfacts.co.uk analyst Michelle Slade commented: "Landlords have had a rough ride in the last year and it looks like 2009 won't be any easier."

It suggests that cash-ready landlords and letting agents who can fund a deposit worth 20 per cent or more have an opportunity to add to their portfolios while prices and competition is low.

Indeed, statistics from the Association of Residential Letting Agents, published last month, showed that nine out of ten landlords were not buying or selling properties to rent.

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