Residential buy-to-let landlords on average are only carrying 41% loan-to-value gearing a survey commissioned by Paragon Mortgages suggests.
The figure has dropped from 44% in November 2002, while the number of properties per average portfolio has increased from 9 to more than 11 properties. This suggests the sector is better equipped to handles a slowdown in rental income than some believe, and that most landlords are taking out property investment loans they will be able to maintain interest payments on even if the market stalls. "Our findings show that buy-to-let landlords as a breed are prudent individuals, and overall have reduced the gearing across their portfolios," says John Heron, managing director Paragon Mortga...
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