Buy-to-let mortgages fall Published: 03/10/2008

Prospective investors who want to make a profit by buying property and renting it out could now find it a little harder to do so.

Research released by moneysupermarket.com has revealed that the number of buy-to-let products has shrunk by nearly a quarter in the past week.

The figures reveal a 23 per cent drop in the number of products in the past seven days.

With research from Nationwide revealing that house prices fell 1.7 per cent in September, the property market is suffering and buy-to-let landlords are not immune to it.

Louise Cuming, head of mortgages at moneysupermarket.com, said: "Yesterday's house price figures from Nationwide have confirmed what we all know - that prices are falling - and landlords are likely to be hit particularly hard by this.

"Rental yields are being squeezed as it is and falling values will only make things worse."

She added that the reduced competition will bring mortgage rates even higher and make it more difficult to source a mortgage.

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