The buy to let market in the UK is heading for a nasty fall

The banks have cut buy to let mortgages and many landlords are seeing the equity in their homes reduce substantially, with a number now creeping into the negative equity. If that isn’t bad enough it gets a lot worse with house prices dropping and the lack of buyers. Property owners have to wonder what the future holds.

The buy to let market has always been one of the most popular mortgages in the UK. In the past this has made the landlords a lot of money, however with the financial crisis it has become harder to obtain rental rates that cover the mortgage repayments and more landlords are being forced to use more and more of their own capital to cover the rising costs.

They can only hope that the credit crisis is over soon.

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06/10/2008 11:02:42