Category : Commercial General property news
Britain's landlords may well be forced to increase rental demands in order to meet mortgage payments as a result of the credit crunch.
A new poll by comparison service moneysupermarket.com suggests that over four million households in Britain have been forced to take out a personal loan or credit card to cover mortgage and rental costs within the past year.
Landlords struggling to meet mortgage repayments could find that they need to raise rental costs in order to service home loans and Lee Grandin at Landlord Mortgages predicts that rents will rise by 20 per cent over the next 12 months.
He told the Times newspaper: "There are less buy-to-let properties being purchased and therefore less rented accommodation available, which will keep costs high."
An estimated 1.4 million people will see short-term fixed rate mortgage deals come to an end during 2008 and many will face higher charges, the Council of Mortgage Lenders forecasts.
Lenders believe that the effects of the global credit crunch will continue to affect financial markets over the coming months.
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