RSS FeedsBuy to let mortgage lenders fall
28/08/2008
The number of buy to let approvals fell for the first time in three years according to new data. The number of new loans dropped to 144,600 in the first six months of 2008 which is a fall of eighteen per-cent compared to the six months previous. These new figures suggest that landlords are also facing issues with the credit crunch as well as homeowners.
It doesn’t look like rates will fall on rented accommodation as demand still remains high. Michael Coogan CML director general said "We expect the rental market to remain underpinned by strong demand, partly because some people who would like to buy a home are being forced to carry on renting for now."
As a result of many buy-to-let investors having to rely on wholesale markets which as a result of the credit crunch have dried up, banks have cut back on lending between each other. It is due to this that the numbers of buy-to-let mortgages have dropped in the first half of the year.
This fall however was not as bad as the rest of the mortgage market where figures fell by as much as twenty-eight per-cent in the first half of the year compared to the previous six months.