January 8, 2008
Landlords selling up
With the property market hitting a bit of a slump, the first sign is the lack of first time buyers and then we see that the landlords who have bought their properties as an investment, but they rely on a tenant pays the landlord rent and this goes towards the mortgage.
But as mortgage repayments have gone up in line with the recent changes in interest rates some landlords are finding it difficult to cover the mortgage repayments, which is causing them serious problems.
First of all they need to find tenants who are willing to pay the rent, if the property is let out for a long time, and then the landlord can afford to pay the mortgage. But some properties are lying empty and this means that the mortgage is hard to pay and once they are behind it is difficult to get back. This is why there is an increase in buy to let properties being sold off.
Source [Savings Friend]
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