Three quarters of landlords believe that banks are not doing enough to support them – despite the launch of new mortgage rates and buy-to-let terms.
A new survey has revealed that just 17 per cent of landlords feel they are getting enough support from lenders and one in 10 have faced problems securing a buy-to-let mortgage.
Research from online letting agent PropertyLetByUs and reported on Property Wire shows that 87 per cent of landlords believe the mortgage fees for buy-to-let loans are too high
The survey also revealed that just 13 per cent believe the interest rates are reasonable.
PropertyLetByUs managing director Jane Morris said: “Our research shows that lenders have some way to go to reassure landlords that they are supporting the buy-to-let sector.
“However, since the banking crisis of 2007, there has been a gradual increase in the availability of finance for buy-to-let landlords and the choice of mortgage products today is better than it has been for a long time.”
The figures showed that more than 70 per cent of landlords have taken out a mortgage in the last six months to purchase a buy-to-let property and 19 per cent have taken out a mortgage to refinance a loan.
Ms Morris said that buy-to-let lenders typically want rent to cover 125 per cent of the mortgage repayments and many are now demanding 25 per cent deposits, or even larger, for rates considerably above residential mortgage deals.
“Landlords need to be cautious with mortgage fees as they can substantially push up the cost of a mortgage, especially if landlords are only fixing, or tracking for a short deal period,” she added.
“The biggest fees are typically those charged as a percentage of the loan, but even flat fees can run to £2,000.”