Lenders must 'loosen purse strings' for buy-to-let mortgage applicants

Date:Friday 16th April 2010
Author: Max Freedman

The National Landlords Association (NLA) has suggested that its members are struggling to finance their buy-to-let arrangements, because lenders are reluctant to release capital.

Vincenzo Rampulla, public affairs officer at the industry body, claimed that it should come as no surprise that there are not many landlords thinking about taking on new properties.

His comments follow research from Paragon Mortgages, which showed that 12 per cent of landlords intend on investing in new property over the next three months.

The NLA representative claimed that tenant demand is already increasing, since many landlords are leaving the market.

He remarked: "Until lenders release their purse strings we will see many landlords unable to make the most of low interest rates and increased tenant demand."

The Paragon report also showed that 67 per cent of landlords looking to make a purchase over the next three months are hoping buy a terraced house, with Mr Rampulla stressing that this decision always comes down to the landlord and the area in which they operate.