Financial services firm Standard and Poor has predicted that buy to let mortgages sold with lax underwriting standards will begin to underperform very soon.

The firm stated that though buy to let mortgages have traditionally survived well in various economic climates, the high interest rates and limited credit brought on by the credit crunch has put undue pressure on the buy to let sector.

Standard and Poor’s report states: “We estimate that just over 50% of buy to let loans outstanding are from the worse-performing 2006-2007 vintages.”

This entry was posted on Thursday, November 20th, 2008 at 4:00 pm and is filed under Buy to Let Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.