Buy_To_Let Negative Equity Risk
Published / Last Updated on 10/05/2011
Buy-To-Let Negative Equity Risk.
Standard & Poor have warned that if house prices fell by 5 per cent in 2011 and a further 5 per cent in 2012, could put 30 per cent of buy-to-let borrowers in negative equity compared to 17 per cent for owner-occupier loans.
The difference between the two sectors is down to the higher average LTV ratio among buy-to-let loans according to Standard & Poor and in the short term.