Amateur buy-to-let investors suffer

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by Kay Murchie

Buy-to-let lenders are very sure about the market and this is probably due to the fact that the majority of their customers are professional landlords with large portfolios and small mortgages – they also know exactly what they are doing.

It’s the novices who struggled to buy a couple of properties with large mortgages that will suffer.

If the amateur buy-to-letters stop buying or sell their property, it won’t have an affect on house prices as there aren’t enough of them.

It is recommended that if you own a buy-to-let property, cut down the size of your mortgage and choose a fixed rate mortgage if money is short.

Research has showed that buy-to-let investors make up 11% of the market. Good returns have been achieved over the last few years but in some parts of the country, they are beginning to suffer a downturn.

Many landlords are struggling to the sell their properties and in addition, are experiencing problems renting them out.