Landlords 'struggling to access credit'

The National Landlords' Association (NLA) has told the Treasury that landlords are still finding it difficult to access finance.

An inquiry into the issue is currently underway in Westminster, as the government seeks to understand the impact of the credit crunch on the availability of loans.

Giving evidence to the Treasury Select Committee, the NLA stated that "lenders have substantially intensified their lending criteria and raised fees, making it harder for landlords to refinance existing loans and finance new acquisitions".

The organisation added: "Many lenders are restricting access to interest-only mortgages, making buy-to-let less attractive as an investment opportunity."

Recent research from the NLA revealed that more than a third of landlords own their own portfolios and do not rely on mortgages, while 61 per cent of such landlords plan to buy more properties in the coming months.

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