Next year 'challenging' for landlords - buy to let mortgages

23 December 2008

Next year will be difficult for some people with buy to let mortgages, it has been stated.

Keshav Thukaram, the managing director of online portal Smartlandlord.co.uk, has warned that the New Year will bring challenges for buy to let investors.

However, he noted that the organisation is working with landlords from around the country to agree on solutions to the onset of recession and the risks that it brings.

By working together, the industry can "limit the impact of rental voids, mortgage arrears and the threat of repossessions", he said.

Mr Thukaram was commenting on recently-released figures from the Council of Mortgage Lenders (CML).

The CML revealed that it expects the number of households in arrears for three months to increase by 500,000 next year.

Unemployment levels will have an impact on the property market, the body warned.

But it noted that for those who manage to stay in employment, variable-rate mortgages will become "progressively" cheaper.