Buy-to-let sees signs of recovery - Mortgages - News - Moneyfacts

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Buy-to-let sees signs of recovery

Buy-to-let sees signs of recovery

Category: Mortgages

Updated: 16/11/2009
First Published: 16/11/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

There are tentative signs that the buy-to-let sector might be about to enjoy an upturn in fortunes, according to research from Moneyfacts.co.uk.

The sector has been one of the biggest casualties of the last two years, with 93% of all deals disappearing in that time.

However, since reaching an all time low of just 179 products in September, a number of new deals have been introduced in the last few months to take the total available to 239.

"Numerous buy-to-let lenders have pulled out of the sector, while many of the remaining lenders are restricting the number of deals on offer, making it harder than ever for landlords to find a competitive mortgage," said Michelle Slade, spokesperson for Moneyfacts.co.uk.

Only four deals currently remain for landlords with a 20% deposit, despite deals requiring just a 10% or 15% deposit making up almost two thirds of the market just over two years ago.

"If landlords want a choice of deals then at least a 25% deposit is needed," added Ms Slade, "although in the residential market a 40% deposit is needed to secure a good deal.

"Many landlords' biggest problem in securing a competitive deal will be finding the deposit needed as previous house price falls are likely to have eaten into the equity available in their portfolio."

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