MI_20-21_buy to let.qxd 22/1/09 15:10 Page 2
20 | Buy-to-let
Post credit
crunch
John Heron,
director of
mortgages at
Paragon
Mortgages,
looks at what buy-to-let
life will be like post
credit crunch
B
U
Y
-
T
O
-
L
T
he year is 2012 and the opening E
T
ceremony of the London
Olympics is about to commence.
Consumer confidence is slowly
returning as the UK tentatively
emerges from the grip of the cred-
it crunch and four years of tough
economic conditions.
It is inevitable that the credit crunch will come
to an end at the some point and that the mort-
gage market will return to a form of normality,
but nobody truly knows when that will be.
However, the worrying possibility is that it could
take as long as 2012 before we can anticipate that
the crunch will be behind us.
At whatever point we do exit - and some
would argue that we never actually will return to
the halcyon days of 2007 as the events of 2008
have changed the economy for ever - it will be
into a radically different environment than to the
world we used to know.
Owner-occupation will be significantly lower
due to reduced transaction levels and increased
numbers of repossessions. As a result house
prices will also be lower, whilst unemployment
February 2009 Mortgage Introducer www.mortgageintroducer.com
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