Buy-to-let mortgages straining under rental difficulties

Posted: 27 Nov 2008 11:31:23 GMT

            Property News - Buy-to-let mortgages straining under rental difficulties

The number of buy-to-let landlords who are now falling behind on their mortgage repayments has increased by half in just the last three months, it has been reported.

Falling rents as a result of increased competition from fellow buy-to-let landlords has led to a gap between rental income and mortgage outgoings, suggests the Council of Mortgage Lenders (CML), which published the figures.

Adding to the poor state of affairs, the CML announced that, for the first time since records began, the proportion of buy-to-let landlords reporting difficulties making repayments has exceeded the proportion of traditional mortgage owners reporting the same problems.

The statistics come just days after it was revealed that one in three second home owners own just 25 per cent or less of their newest property, leaving them highly exposed to fluctuations in the marketplace.

With the current problems facing buy-to-let owners many may wish to sell up before they are forced into repossession.

To sell a property online may save a homeowner costly estate agents fees, and lead to a quicker sale, as more people can view the ad.

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