Landlords who invested at height of market 'may have mortgage problems'

Date:Thursday 9th July 2009
Author: Max Freedman

Buy-to-let mortgage investors who secured properties at the height of the market within the last couple of years may be experiencing financial problems, Smartlandlord has said.

It suggested that speculative landlords who bought homes when prices were high have relatively high loan-to-value mortgages.

The organisation stated: "Those landlords need to take extraordinary steps in these extraordinary times to safeguard their investments and cut costs even further if they're to survive."

People who entered the private rented sector in the last couple of years are having a "particularly hard time" at present, it added.

However, for buy-to-let investors who do not rely on debt, now is the "perfect opportunity" to invest in more properties, Smartlandlord claimed.

Recently, Alan Ward, chairman at the Residential Landlords Association, said the range of buy-to-let mortgages available in the UK remains restricted at present and while there are "always opportunities", people should not "talk-up" the number of options available.