Landlords urged to buy rent insurance

Date:Monday 23rd February 2009
Author: Rachel Fletcher

Landlords with buy-to-let mortgages have been urged to make sure they purchase rent guarantee insurance.

Website warned that mortgage arrears are increasing within private rentals and said landlords need to make sure they are covered in case their tenants default.

It said that many landlords do not know of the existence of such cover and that it will shortly be launching several products, including this type of insurance.

The statement by the website also said that having rent guarantee insurance could help to guard against repossessions within the buy-to-let sector.

Recently, made a comment about figures regarding mortgage lending from the Council of Mortgage Lenders.

Responding to the finding that fewer people are getting buy-to-let mortgages, the website stated: "There are no lenders left in the market to provide them."

It said that such lenders are either waiting for a revival of securitisation markets or have been nationalised and will not give loans to landlords.