The number of mortgages for investment properties has dropped by close to a quarter in the past week, as lenders in the sector have made a swift retreat after the mortgage books of buy-to-let giant Bradford & Bingley was taken over by the Government.

Seven days ago there were 703 products to choose from; now there are only 540. Reduced competition is likely to lead to higher rates and even more difficulty in sourcing a mortgage, says Louise Cuming, head of mortgages at moneysupermarket.com: "Yesterday's house price figures from Nationwide have confirmed what we all know - that prices are falling - and landlords are likely to be hit particularly hard by this. Rental yields are being squeezed as it is, and falling values will only make things worse.

"The lack of buy-to-let mortgage deals is another potential landmine, with lenders including NatWest, Bristol & West and, of course, Bradford & Bingley pulling many of their BTL mortgages this week."

---

Tag this article :