We all know that things have gotten pretty bad in the buy to let sector over the past year and we have had hundreds of statistics thrown at us to prove it, but every now and again a statistic has the power to shock even me.
One such stat appeared in a story in The Telegraph this week, apparently the buy to let mortgage market has shrunk by 95 percent over the past two years. According to the financial website moneysupermarket.com, the number of different mortgages available for rental properties has dived from 4,384 in April 2007 to just 213.
On top of this the rates for buy to let mortgages, if landlords are lucky enough to get hold of one, are far from as favourable as in the mainstream mortgage range. The average interest rate charged on a buy-to-let mortgage has reduced by only 1.51pc since June last year, compared with a 2.6pc drop in average residential mortgage rates.
As if all this is not enough lenders are also demanding much higher deposits from landlords, on average 15 percent more.
It is no wonder those of us in the buy to let market are finding times so tough at the moment. Making things so difficult may prove short sighted of lenders in the long run; they are after all just the type of business that may help to spark a recovery, if given half a chance.
