A growing number of landlords are struggling to remortgage because of fall of more than two thirds in the number of buy-to-let deals on the market.
Research published yesterday showed a 50%increase in the number of buy-to-let investors looking for a new mortgage in the past year. However, the number of mortgages has fallen by 70% in the past 12 months, representing a time bomb for those needing to remortgage, according to experts.
Thousands of landlords are due to apply for new deals in the next few months. The number of loans granted reached a peak of 176,500 in the second half of 2007, just before the run on Northern Rock and the start of the squeeze on lending. Many of those landlords are thought to have taken out two-year deals that will end soon.