Buy-to-let loans vanish

The demise of the buy-to-let mortgage market is highlighted in recent research by…

According to the price comparison website, the number of products available has fallen by over 70 per cent during the past year, while enquiries for buy-to-let loans have increased by nearly 50 per cent in same period.

Furthermore, those fortunate enough to secure a loan will discover that rates have not fallen in line with the mainstream mortgage market, down a typical 1.13 per cent since August last year compared with 1.95 per cent for the residential borrower.

The firm's mortgage channel manager, Hannah-Mercedes Skenfield, says: "New and existing buy-to-let landlords face a difficult task in finding a suitable mortgage … with significantly less products left on the market and high interest rates attached to those available we could potentially have a ticking buy-to-let time bomb on our hands."

She adds: "Because banks are targeting safer borrowers for their limited mortgage funds, they have either abandoned or severely restricted their involvement in the buy-to-let market."