Re-financing 'not an option for landlords'

by Rachel Crook

Landlords involved in the private rental property sector no longer have the readily available option of refinancing their borrowing, it has been stated.

Editor of landlords' website Property Hawk Chris Horne observed: "One of the things which was propelling the buy-to-let lending boom was that after two or three years a landlord could switch and get very competitive fixed-term rates."

However, he noted, these are no longer available, something that will also "constrain" the number of new entrants into the market.

Figures from finance website Moneysupermarket.com revealed that the number of buy-to-let mortgages fell from 4,384 to 213 over the past two years.

It also noted that while normal mortgages saw an average reduction in their rates of 2.6 per cent since June 2008, for buy-to-let products it was only 1.51 per cent.

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Published on: May 7, 2009

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