Buy-to-let mortgages become scarce

Posted 2008-05-5

The number of buy-to-let mortgage products has decreased significantly over the last month, which could point to a housing disaster, an industry expert has claimed.

According to research from Moneysupermarket.com, the number of deals available to landlords fell by 40 per cent in the last month, while the number of people renting property increased by five per cent.

Louise Cuming, head of mortgages at the site, believes that the trend could lead to a worrying situation in the future.

"Our research shows the number of buy to let products has decreased from 4025 to 674 in just one year, with nearly 600 of these products removed since March 31st. I fear we will soon see many people unable to buy or rent," she said.

The research also found that 11 per cent of people who had considered getting a mortgage feel they have been priced out.

In related news, recently an advisory firm to potential buy-to-let investors, Inside Track, went into administration and customers have threatened legal action for their losses of several thousand pounds.

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