Plug pulled on BUY TO LET again

After a flurry of applications for cheap mortgages from eager landlords to capitalise on the Buy to Let boom, some of the major players, such as the Post Office and Skipton Building Societty, have withdraw some of their cheaper products from the market.

In recent weeks over 50 have been withdrawn.

In between April and June of this year over 2,600 mortgages were authorised each week.

Specialist in the Buy to Let market, Kensington pulled the last of their deal which required only a 15% deposit within the last few days.

Landlords who have missed out will now have larger mortgage payments. Skipton’s tracker rate has risen from 3.24 per cent to 3.59 per cent – which relates to an extra £44 a month on a £150,000 interest-only mortgage.

Banks have reached the maximum amount they can lend on their cheapest and most popular Buy to Let mortgages.

However, most experts do not feel this will deter landlords from continuing to make further purchases.

With the continued housing market stagnation, rents are reaching record levels. Currently the average being £713 per month.

David Hollingworth, head of communications at mortgage broker London & Country, said: ‘With such a strong demand for buy-to-let mortgages, banks will need to manage how much they can lend.’

Kevin Cox founder of Bristol Lettings Agents igloolets.com said “Even with the boom in the market place, lenders have to be seen to be taking precautions on the amount and to whom they lend. The results of the last crash are still very much in people’s minds and still raw”.