Moneysupermarket.com has warned of a widening gap between supply and demand for buy-to-let mortgages. Enquiries for buy-to-let mortgages increased by nearly 50% since August 2008, whilst available products have diminished by over 70% over the same period.
Also, the price comparison site reported that buy-to-let mortgage rates have not fallen by as much as mainstream mortgage rates following the decreases in the Bank of England Base Rate. Since August last year the average rate for mainstream mortgages has reduced by 1.95%, whilst buy-to-let rates have only fallen by 1.13%.
Hannah-Mercedes Skenfield, mortgage channel manager at moneysupermarket.com, said: “New and existing buy-to-let landlords face a difficult task in finding a suitable mortgage. Our figures show nearly 10% of those looking for a mortgage are looking for a buy-to-let mortgage