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Interest rate cuts `were not anticipated by consumers` Nearly half of young mortgage holders `need help from family` Abbey cuts mortgage rates New arrears guidance issued by CML Mortgage fraud `on the up` CML expresses concerns over sale and lease back schemes Business groups call for further rate cuts Interest rate cut `will help some struggling borrowers` Mortgage approvals `hit by continued market uncertainty` Company reduces rate of home loans Mortgage rates `to rise` Consumers `will be hit by reduced credit` `Nearly £20k` needed to secure a mortgage Borrowers urged to take advantage of good mortgage deals Mortgage lending falls in August Variable-rate mortgages `increasingly appealing to homeowners` Parents `relying on loans to cover school fees` Further mortgage rate cuts announced Remortgaging `on the rise` Mortgage lenders call for swap plan renewal

Popular buy-to-let mortgages `may decrease property prices`

31/08/2007

Another increase in interest rates may send prices of rental properties falling by as much as 20 per cent, one of Britain`s biggest landlords has said.

Investors in the buy-to-let mortgage market are losing money rapidly due to high rates of interest, Andreas Panayiotou chairman of the Ability Group, which has developed more than 2,500 flats, said.

While landlords took out 171,800 buy-to-let mortgages in June, according to the Council of Mortgage Lenders, Mr Panayioyou told the Financial Times that thousands would have to drop prices as the gap widens between profits and borrowing costs.

Mr Panayioyou said: "Investors are joining in because people say that residential is great, but they are not experienced enough. There are blocks across the country where most of the flats have been bought by buy-to-let investors and many are empty."

In related news, the government has ordered an investigation in to the high levels of buy-to-let mortgages being sold to see whether it is driving first-time buyers away from the market, Inside Housing reports.

Many debts unaffected by base rate cut 09/01/2009 - Yesterday, many borrowers welcomed the Bank of England’s base rate 1.5% base rate – an historic low 08/01/2009 - Today’s base rate cut by the Bank of England’s Monetary Gas price cuts expected 07/01/2009 - Energy company Scottish Power has announced the launch of a Personal debt about £1.5 trillion 07/01/2009 - The UK’s personal debt stands at around £1.5 trillion, according