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Moneyfacts on first time landlords

Buy-to-let investors face significant financial pressures due to the credit crunch, analysts at Moneyfacts.co.uk said yesterday.

The comments come despite a recent study from the Council of Mortgage Lenders, which showed buy-to-let loans on the increase in the UK.

Figures from Moneyfacts.co.uk, however, show that lenders are tightening their criteria for offering home loans - making it harder for the investors to buy.

The average deposit required by mortgage providers, for example, has increased from just over 17 per cent to 20 per cent over the past year.

This makes purchasing a home more costly - despite the five successive months of house price falls recently noted by Hometrack.

Commenting on the outlook for buy-to-let investors, senior analyst at Moneyfacts.co.uk Alan Harper said: "Moneyfacts.co.uk research shows that landlords have not escaped the fallout from the credit crunch.

"For individuals who are not existing homeowners and who are looking to buy-to-let on their first property, the market is…restrictive - nearly half of all buy-to-let lenders won't lend at all to first time buyers."

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