Landlords unable to find more than a 20% deposit can no longer find a new deal, despite deals requiring just a 10% or 15% deposit making up 64.8% of the market just over two years ago.

Only four deals from Clydesdale and Yorkshire Bank remain for landlords with a 20% deposit. If landlords want a choice of deals then at least a 25% deposit is needed.

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“Numerous BTL lenders have pulled out of the sector, while many of the remaining lenders restricting the number of deals on offer, making it harder than ever for landlords to find a competitive mortgage.

“The number of deals available is a long way off the peak seen in August 2007, although in the last few months the sector has seen positive signs with the number of deals available increasing from the all time low of 179 in September 09 to 239 available today.

“Many landlords’ biggest problem in securing a competitive deal will be finding the deposit needed as previous house price falls are likely to have eaten into the equity available in their portfolio.

“At least a 25% deposit is needed, but in the residential market a 40% deposit is needed to secure a good deal.

“Despite a 5.25% drop in base rate between August 2007 and today’ the average fixed rate mortgage has only reduced by 0.57%, while the average tracker has only fallen 1.88%.

“BTL lenders have continued to tighten criteria, restricting the size of portfolios that landlords can have, both in number of properties and maximum total advance.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

Comments

Daniel
26 Nov 09, 03:07

Great news

Finally, some really good news about the recession. I hope we are on the come back from this, the amount of financial stress this period has caused really has been hard going. Great stats, hopefully these will continue.

Daniel

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