Buy to let mortgage availability could constrict in 2011

19 April 2010

Posted by David Whittaker

The combination of factors currently influencing property funding as a whole could lead to a contraction in buy to let mortgage availability.

With the recovery from the recession continuing and further impacts on the property funding market not expected until 2011, it could be the best opportunity for some time to look into arranging a buy to let mortgage and expanding a rental property portfolio.

Paul Samter, economist for the Council of Mortgage Lenders (CML), says: "Financial institutions still face the prospect of around £300 billion of official support schemes beginning to end from next year."

But he adds that activity at present is "comfortably higher" than at the low point of the recession, with the end of the stamp duty holiday one factor that has kept it relatively subdued in recent months.

The CML also suggests that the new stamp duty exemption for first-time buyers may not have a substantial impact on the number buying their first home, as the criteria for eligibility are tight.

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