Enquiries for buy-to-let mortgages increased by nearly 50% since August 2008, whilst available products have diminished by over 70% over the same period.
Buy-to-let mortgage rates have not fallen by as much as mainstream mortgage rates following the decreases in the Bank of England base rate. Since August last year the average rate for mainstream mortgages has reduced by 1.95%, whilst buy-to-let rates have only fallen by 1.13%.
Hannah-Mercedes Skenfield, mortgage channel manager at Moneysupermarket, said new and existing buy-to-let landlords now faced a difficult task in finding a suitable mortgage.
She explained: “Our figures show nearly ten per cent of those looking for a mortgage are looking for a buy-to-let mortgage, but the number of products has fallen by over two-thirds compared to this time last year.”
She added: “With significantly less products left on the market and high interest rates attached to those available we could potentially have a ticking buy-to-let time bomb on our hands; the need for rental housing is increasing, but there may not be enough landlords available to cater for this demand.”
