The availability of mortgages for buy-to-let properties has improved but interest rates are still too high for some, it has been claimed.
Alan Ward, chairman of the Residential Landlords Association (RLA), said that there has been an increase in the number of mortgage products on the market.
However, there is still pressure from equity rates which remain too high for a number of people to afford.
Mr Ward added: “As well as this, some lenders are adding strange conditions, like LHA [local housing allowance] tenants are only allowed if payments are made to the tenant – which is contrary to RLA arguments and many tenant organisations who believe direct payments to landlords are safer.”
The comments come after a report showed that demand for buy-to-let mortgages has increased to 16.8 per cent of total mortgages.
According to the study by haart, this is the highest level demand for such products has reached in 2011 and is in contrast to the start of the year when buy-to-let made up just 10.9 per cent of all mortgages.
