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May 14 2008 by Tony McDonough,
ANYONE either intending to become a first-time property landlady or landlord investor this year must take heed of the following warning.
Due to the current credit crunch, many would-be amateur landladies and landlords will now find that banks are effectively refusing to lend to new entrants, especially within the buy-to-let market. Thousands of existing landladies and landlords right across Merseyside and Wirral also face huge increases in the cost of remortgaging.
First-time landlords, including parents eager to buy for their student children, will now find it almost impossible to enter the housing market.
Building society lenders have stopped offering buy-to-let loans or severely tightened their lending criteria form prospective landladies and landlords and many of the existing 1m buy-to-let mortgage holders approaching the end of their terms.
Chris Wood, of the National Association of Estate Agents, said: “It is the amateur investors who are feeling the pinch.”
With lenders worried about falling house prices, prospective borrowers without a substantial deposit will find it very tough to get a buy-to-let loan.
Source:
http://www.ldpbusiness.co.uk
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