Buy To Let Mortgages collapse
An indication of the buy to let mortgage market on a downturn was witnessed yesterday; one of UK's largest lenders Bradford & Bingley, revealed a 50 per cent jump in arrears.
The number of landlords who are three or more months behind on their mortgage payments have jumped over 52 per cent between January and April
Even though the buy-to-let market has drastically been slower, the rental sector has increased. The number of buy-to-let mortgages has more than doubled over the past four years.
Punter from Southall Financial Management, John Postlethwaite commented: "In the past three to four years we have experienced a buy-to-let boom, mainly fuelled by private landlords purchasing a second or third property, putting down a minimum deposit and borrowing the maximum available."
Landlords have witnessed their mortgage rates increase by 2 percent as they came to an end on their current deals.
Ms Anderson stated that mortgage approvals reduced to a 15-year low, he added. "If people aren't buying, they still need somewhere to live."
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