Introducer Today

News Story

Buy-to-let set to 'underperform'

Thursday 20th November 2008

The buy-to-let mortgage sector could be in for a rough ride as mortgages sold with loose underwriting standards start to underperform, according to Standard & Poor.

According to the financial services firm, the mortgage market will react poorly to the current economic downturn and in particular will fare far worse than the rest of the homeowner loan sector.

Standard & Poor believes that despite buy-to-letmortgages historically performing well when compared with prime loans, rising interest rates and limited credit are putting pressure on the property investment sector.

The number of landlords in arrears is rising, according to the firm, and the loan-to-value of many products is also on the increase.

"We estimate that just over 50 per cent of buy-to-let loans outstanding are from the worse-performing 2006 and 2007 vintages," the report states.

Meanwhile, according to the Royal Institution of Chartered Surveyors, buy-to-let rents are on the verge of falling for the first time in five years.


© Copyright 2007

 Send to a Friend

---

View Comments          0 comments

Report Abuse

There has been no news comments

Post Comments

Please login to post comments:

Username:     

Password:     

      New User Sign Up

Post Comments without login

Your Name:     

Your Email:      
(not published)

Comments: Posting guidelines

---

Related News Stories

Landlords should not be 'treated like pantomime villains'
Friday 26th June 2009

Rents fall but are 'starting to stabilise'
Tuesday 23rd June 2009

Buy-to-let prices rise and rents stabilise
Wednesday 17th June 2009

CML offers guidance on buy-to-let arrears
Thursday 11th June 2009

Cannabis factories are a growing problem
Tuesday 9th June 2009

---

Most Read News Stories:

Regulator to ban self-cert mortgages
Tuesday 13th October 2009

Tesco to launch mortgages before current accounts
Monday 23rd November 2009

Case result major blow for claims management firms
Monday 26th October 2009

Mortgage advisor pleads guilty to charges
Wednesday 29th October 2008

FSA bares teeth on broker regulation and self-cert
Monday 19th October 2009

---

 Print     Discuss in Forum     RSS Feed    News Archive   

---

Share this article:

  Digg it      Del.icio.us      Reddit      Newsvine      Nowpublic   

---

News Categories:

Adverse Credit

Buy-to-Let

Diversification

Equity Released

Flexible & Offset

Industry

Islamic

Life Insurance

Non-Conforming

Other Products

Packaging Market

Personal Loans

Secured Mortgage

Self-Build

Self-Cert

Sub-Prime

---

Feedback:

If you have any questions or suggestions about this article or our news section, please don't hesitate to contact us.

---