Louise Cuming, head of mortgages at moneysupermarket.com, said: “Yesterday’s house price figures from Nationwide have confirmed what we all know – that prices are falling – and landlords are likely to be hit particularly hard by this. Rental yields are being squeezed as it is and falling values will only make things worse.
“However we’ve identified another potential landmine, with lenders including NatWest, Bristol & West and, of course, Bradford & Bingley pulling many of their BTL mortgages this week. Seven days ago, there were 703 to choose from, now it is only 540. Reduced competition is likely to lead to higher rates and even more difficulty in sourcing a mortgage.”