As landlords try to stay afloat and keep making the payments on their mortgages, more are seeking cheap unsecured loans and often coming up empty. The result may mean that foreclosure figures will once again be on the rise. While cheap unsecured loans are available to some, the overall availability has fallen drastically over the past few months and will undoubtedly continue to drop for some time. This is little comfort to those that need the help that a cheap unsecured loan can bring, especially if it is necessary to avoid a foreclosure. However, that may be the shape of things to come for the next few months.
Melanie Bien at mortgage broker Savills Private Finance said: “Lending criteria has tightened across the buy-to-let sector. Compared with only a year ago, lenders need a bigger deposit, around 25%, and tighter rental cover requirements will cut many investors out of the picture.”
Nick Clark of The Property Show said: “With house prices falling . . . investors should look at student accommodation as a long-term investment based on high rental returns rather than capital growth. If they are planning to sell within a year or two they will lose out.”
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