Released on: May 22, 2008, 4:05 am

Press Release Author: Mortgages for Business

Industry: Real Estate

Press Release Summary: Mortgages for Business, the leading specialist buy to let
mortgage broker is warning landlords almost all buy-to-let products in the
marketplace are now priced above a 'psychological' 6% - a trend they expect to
continue for the foreseeable future.


Press Release Body: Cheltenham and Gloucester last week withdrew their well priced
5.89% five year fixed mortgage replacing it with 6.29% five year fixed rate.

Jonathan Moore, head of marketing at href=http://www.mortgagesforbusiness.co.uk/>buy to let specialist Mortgages for
Business comments: "Other than a few exclusives available for a limited period, all
mortgages on our sourcing system, which searches the market, are priced above 6%.
This is first time we have seen this situation this year and certainly for several
years. Lenders with mortgage products below 6% have been flooded with applications
and have been forced to withdraw products that have only been available for a matter
of days."

"Although the repayments between a mortgage at the high end of 5% and the low end of
6% are small, there does currently appear to be a negative perception around this
price point for buy to let
investors. At present we are in the process of educating our clients about the
level mortgages are priced at, especially investors who haven't remortgaged for a
couple of years who could be coming off a 4.99% fixed product."

Despite the £50bn placed in the market to ease liquidity from the Bank of England,
LIBOR the basis for mortgage pricing remains approximately 0.75% above Base Rate and
this therefore continues to keep up the pressure on mortgage pricing.

Jonathan Moore continues: "The liquidity and mortgage pricing is having some
favourable benefit for many landlords across the country. Firstly the smaller pool
of first time buyers has increased rents by an average of around 4% according to
ARLA. Secondly house building is at its lowest level for a decade heightening
potential supply and demand issues in the areas such as the South East. Finally more
people may look to short term renting after selling their principle property as they
wait to see if prices will fall further."

For more information call Mortgages for Business on 0845 345 6788 or visit
www.mortgagesforbusiness.co.uk

## ends ##

Notes
Mortgages for Business are independent experts in buy to let and commercial
mortgages managing single and multi-let property portfolios for thousands of UK
investors. Its brokers have access to a large portfolio of fixed and variable
interest rate mortgages from a panel of over 30 lenders and offer truly independent
advice that is appropriate to investors.



Web Site: http://www.mortgagesforbusiness.co.uk

Contact Details: Contact
Jonathan Moore, Head of Marketing
Mortgages for Business
Tel: 01732 471600 / 07810 717421

Alison Baldwin, Coast Communications
Tel: 01233 503200 / 07949 561489