Friday, September 28, 2007
Buy to let bitten by credit crunch
According to mortgage advisors at Moneyfacts.co.uk, the credit crunch is now starting to take its toll on the buy-to-let market. “While the prime residential sector has so far been largely unaffected by the sub-prime crisis, the buy-to-let sector is beginning to show signs reminiscent of the sub-prime market over the last few weeks with tightening credit criteria, the withdrawal of products and rising fees.” In one extreme case a lender has withdrawn all mortgage products, while several others have made all tracker rate mortgages off limits. Rental cover requirement has increased by between five and ten per cent, and arrangement fees have increased substantially.