RSS FeedsBuy to let market could be on the way out
12/06/2008
For those looking to acquire a buy to let mortgage could be entering a troubling mortgage market product sector. According to recent information from Bradford and Bingley the buy to let property market is under great threat of collapse.
The report highlights worrying statistics that there has been a 50% increase in the number of landlords who cannot maintain their mortgage repayments.
The buy to let sector of the market has seen some very buoyant times, many people have managed to reap huge profits at the best times, however, things are not so good now and the truth is that many landlords have overstretched or even tried to grow their portfolio to quickly not taking into account future market changes.
Many landlords are near to maximum borrowing on their properties and have realised that rental incomes have not exactly risen in line with the associated costs for the upkeep of properties, in particular the increase in interest rates.
The knock on consequences of this could result in an upsurge of properties entering the market that landlords cannot keep thus affecting and impacting the property price values further.