Increase in "reluctant landlords" trying to cover mortgage costs

Date:Friday 22nd May 2009
Author: Max Freedman

The UK has seen an increase in the number of so-called "reluctant landlords", who rent out properties they cannot sell in order to help cover their mortgage costs, it has been suggested.

According to Unbiased.co.uk, almost five million homeowners are considering renting out their properties for this reason, with approximately 1.5 million doing so because they cannot afford to sell their homes for a loss.

Younger homeowners were identified as the group most likely to consider renting out properties to ease mortgage repayment pressure.

Commenting on the findings, Unbiased.co.uk spokesperson Richard Winder said: "We're seeing a new wave [of homeowners] who may end up reluctant landlords because they need more money and don't want to sell up in the current market."

Meanwhile, Click n go Mortgages broker Peter Cowell recently claimed that homeowners who took out mortgages in early 2007 may find that the costs of their monthly repayments rise sharply when their current deals end.