Landlords 'must wait for competitive mortgage rates'

News Category: Industry News

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Landlords who want to expand their property portfolios have been advised to wait until mortgage rates improve.

According to Lee Grandin, director at broker Landlord Mortgages, it could be two years until lenders start offering competitive rates to buy-to-let landlords again.

He described the market as "restricted" and stated that this is why house prices are struggling to increase over the last few months.

"In this last quarter, while we have seen products improve, there is no demand for taking those products on because you still require a very large deposit to make the purchase work," he said.

Mr Grandin added that most buy-to-let landlords will not have these large amounts of money available to put down as a deposit on a new property.

He was commenting after the Council of Mortgage Lenders reported that there was an increase in the number of mortgage approvals by lenders in the second quarter of 2010, compared to the first three months of the year.

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