Independent financial services monitor Moneyfacts claims that a new report is about to reveal the withdrawal of 74 buy to let products in the past month - the biggest fall in product availability for eight years.
“Usually, the month of December is quiet, with providers gearing up for the holidays. This time, however, the market has seen a surge of activity, with the number of buy to let products falling back to July 2016’s levels. Withdrawals have not been limited to just a few providers, either, with reductions having been spread across the board” explains Charlotte Nelson of Moneyfacts, citing a Moneyfacts report to be published later this month.
“With new rules reducing the amounts landlords will be able to borrow, it is little wonder that the 75 per cent loan-to-value sector has seen the largest reduction in product numbers, falling from 606 to 540 in just one month” she says.
“Alongside tougher affordability, [there will be] major changes to the way in which income from property rentals is taxed will be coming in April. Lenders are perhaps withdrawing products to get back to just their ‘core’ range in an attempt to wait and see what other providers will be doing in the run up to April” adds Nelson.
Moneyfacts says 2017 is set to be an uncertain year.
“Anyone unsure about their options should seek out a financial adviser” it advises.