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Buy-to-let 'feeling the squeeze'

Britain's buy-to-let investors are facing tough times in the credit crunch, the Daily Mail reports.

The ongoing financial crisis has led to house price inflation in the UK slowing sharply - with latest monthly polls from Nationwide and Hometrack both showing slight drops in prices.

This has opened the possibility of many homeowners falling into negative equity - a problem that is compounded for landlords who own multiple homes.

Moreover, buy-to-let investors who are hit by falling prices can also find it impossible to remortgage when their cheaper fixed rate interest periods come to an end - meaning that, in many cases, payments will not be made and homes will be repossessed.

Rosemary Jane, who is currently facing negative equity in two of her three properties, told the newspaper that it was "unlikely" that she will be able to remortgage her properties to another lender.

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