The credit crunch is set to hit tens of thousands of buy-to-let property investors as mortgage lenders increase interest rates, experts warned last night. The Daily Telegraph

Two buy-to-let lenders — Advantage and Edeus —announced rate rises yesterday, following increases from Northern Rock and Alliance & Leicester, in spite of the Bank of England holding the base rate at 5•75%.

There are an estimated 400,000 private investors in Britain, who own almost 1 million properties.