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Buy-to-let 'still going strong'

Investors aiming to take out a home loan in order to get into buy-to-let should tread carefully, Blevins Franks Mortgage Services has advised.

The impact of the continuing credit crunch has led to many mortgage lenders withdrawing some of their bigger loans, a trend which has made it more difficult to enter the market.

This could have a significant impact on the growing buy-to-let sector - which was worth over £45 billion in 2007.

However, managing director of Blevins Franks Mortgage Services Christopher Tanner advised that the effects of the crunch would be felt less by the buy-to-let market than elsewhere.

"The buy-to-let market is actually very buoyant - lenders are less worried about buy-to-let than anything else," he said.

"If you are a first-time investor, make sure you find a property that's suitable; you're taking out loans you can afford to repay; you're not extending yourself where you've got no money in the bank when you have a void period, or a tenant doesn't pay."

Figures from the Council of Mortgage Lenders show that 179,100 buy-to-let loans were issued in the second half of 2007.

This was up from late 2006's total of 177,200.

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