Before my Lunch -
Buy-to-let mortgages plunge on market fears
By Emma Thelwell
Last Updated: 11:53am GMT 17/12/2007
The days of making a quick buck as a buy-to-let landlord could be numbered, as figures released by Hamptons International today revealed that the number of buy-to-let mortgages taken out plunged nearly 26pc last month.
As enthusiasm for investing in buy-to-let properties falters in the face of a cooling property market, the proportion of mortgages taken out in order to purchase buy-to-let properties fell back to 18pc during November, down from 44pc in the same period last year.
The estate agent's mortgage-tracker report also found that the proportion of buy-to-let landlords remortgaging jumped 6.2pc in the same period.
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Hamptons said a number of landlords are choosing to recoup existing capital by re-mortgaging properties they already own.
Jonathan Cornell, managing director of Hamptons Mortgages, said: "Amateur landlords will have suffered the most and many may have held off from purchasing new properties - presumably in the hope that the market will begin to calm."
The group said that a number of landlords may have been deterred by the credit crunch - and are recalculating their risk and expenditure instead of adding to their portfolio by snapping up more properties.
However, Mr Cornell added: "Now that the Bank of England has cut the base rate by a quarter point, confidence will hopefully begin to be restored among landlords but it might take some time for this to take full effect."
Hampton's report also showed that consumers are continuing to shy away from two-year fixed-rate mortgages, with a 4pc decrease in applications last month. In the last six months, the proportion has plunged a massive 44pc. The proportion of variable rate mortgages taken out, on the other hand, have increased by 26pc - as consumers look towards further interest rate cuts.
Buy-to-let mortgages plunge on market fears
By Emma Thelwell
Last Updated: 11:53am GMT 17/12/2007
The days of making a quick buck as a buy-to-let landlord could be numbered, as figures released by Hamptons International today revealed that the number of buy-to-let mortgages taken out plunged nearly 26pc last month.
As enthusiasm for investing in buy-to-let properties falters in the face of a cooling property market, the proportion of mortgages taken out in order to purchase buy-to-let properties fell back to 18pc during November, down from 44pc in the same period last year.
The estate agent's mortgage-tracker report also found that the proportion of buy-to-let landlords remortgaging jumped 6.2pc in the same period.
advertisement
Hamptons said a number of landlords are choosing to recoup existing capital by re-mortgaging properties they already own.
Jonathan Cornell, managing director of Hamptons Mortgages, said: "Amateur landlords will have suffered the most and many may have held off from purchasing new properties - presumably in the hope that the market will begin to calm."
The group said that a number of landlords may have been deterred by the credit crunch - and are recalculating their risk and expenditure instead of adding to their portfolio by snapping up more properties.
However, Mr Cornell added: "Now that the Bank of England has cut the base rate by a quarter point, confidence will hopefully begin to be restored among landlords but it might take some time for this to take full effect."
Hampton's report also showed that consumers are continuing to shy away from two-year fixed-rate mortgages, with a 4pc decrease in applications last month. In the last six months, the proportion has plunged a massive 44pc. The proportion of variable rate mortgages taken out, on the other hand, have increased by 26pc - as consumers look towards further interest rate cuts.
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