Mortgage lender competition 'good for landlords'

While increasing interest rates mean that landlords now have to pay more for their properties, stiff competition among lenders means that investors can still find great deals, an expert has claimed.

Many feared that an upward trend in interest rates would put additional pressure on landlords looking to expand their portfolio of property, but Ray Boulger of John Charcol said that competition among lenders had mitigated this risk somewhat.

He told the Times newspaper: "The price war over the past year or so has been more aggressive in the buy-to-let market.

"It has got to the point where the best buy-to-let mortgages are in line with mainstream rates.

In the face of competition on rates, Mr Boulger added that lenders were exploring other deals to attract landlords.

He told the paper that some mortgage lenders were reducing the rental cover - the expected rental income compared with the cost of the mortgage repayments - which a landlord needed.

Recently, Arla said that buy-to-let landlords were vital to the continued health of the UK property market.