Landlords 'suffering due to lack of mortgage lending'

Many landlords in the UK are struggling to secure loans to fund property purchases, it has been suggested.

Research conducted by Paragon Mortgages found that more than half of such people polled attempted to source buy-to-let mortgages in the three months ending in August.

Of these, nine in ten reported that the availability of home loans has become scarcer.

The firm suggested that there were a total of 196 mortgages available at the end of last month, which was a fall on the 218 recorded in May.

Responding to the figures, Paragon managing director John Heron said: "Mainstream lenders are reducing their focus on this sector and specialist lenders are still unable to access the wholesale funding markets to enable them to offer new products."

Last month, Vincenzo Rampulla, the Council for Mortgage Lenders' public affairs officer, said landlords were benefiting from lower interest payments on their mortgages during the recession.
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22/09/2009 15:15

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