UK Landlord Forum / Life

Melanie Bien, the director of the independent mortgage broker, Savills Private Finance, says: "Bradford & Bingley is responsible for a quarter of all buy-to-let mortgages, so if it reins back from the market there will be even less choice for landlords looking for a new deal or remortgaging.

Why is buy-to-let so badly affected by this slowdown?

The current slowdown is hitting amateur investors particularly hard because many have invested heavily in new-build flats in city centres, the sector in which property price falls are concentrated. Many of these landlords are having to slash rents to avoid leaving the properties unlet, just as their costs are rising. Lenders are being cautious and now view buy-to-let loans as high-risk.

Does that mean that there is no money for home loans available for investors? And what can they do?

Professionals (those who own portfolios of five or more homes) can still get good deals. Others can find loans, but must expect to pay more for their money, regardless of recent cuts in official interest rates. Melanie Bien says: "Those who are most at risk of tighter lending conditions are novice landlords who may have taken on high LTVs [loan to value] and are now looking to remortgage. Borrowers may have to invest their own money to bring down their LTV to enable them to shop around for another deal. The alternative may be sticking with their existing lender — either on SVR [standard variable rate] or a rate of about 2 per cent above base rate."

Full article here

When people start hitting those SVR's and find an extreme lack of remortgaging options, they're going to be hit HARD!

But then again, I've seen a lot of, "we'll match your current mortgage deal" offers. Has anyone else seen them? I can't remember which lender was offering that- i'll try to dig it out.

You talking to yourself ??

I think lot of money will come in to fill their void