Landlords facing more higher mortgage repayments

News Category: Industry News

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Property investors and landlords looking to add to their portfolio are facing significantly higher repayments on mortgages, it has been discovered.

Research conducted by moneysupermarket.com found that the over the last year, the average rate for a 75 per cent loan to value buy to let mortgage has increased by 0.35 per cent to 7.33 per cent.

Meanwhile, the rate on 85 per cent LTV products has risen by 0.63 per cent to 7.46 per cent.

This will mean that in order for landlords to cover their repayments they must either hike their rents or find the shortfall themselves.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "These are worrying times for tenants, landlords and developers.

"With the cost of living spiralling out of control, tenants are unlikely to be willing to wear increased rental demands"

She added: "Those landlords wishing to remortgage buy to let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates."

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