Monday, 30 March 2009

Pass the Rate

Our business partners Pebble have organised an on-line petition to protest at the way banks are failing to pass on the reductions in base rates to Landlords. is pleased to support this initiative. The Government has consistently stated that it wants to see the banks support small and medium sized businesses and yet it has done nothing to help the 800,000 plus Landlords in the UK.

The Government is now effectively in control of most of the major Buy-to-Let lenders including HBOS and Northern Rock. It has facilitated the sale of brands like the Bradford & Bingley and Alliance & Leicester but all that has done is make the situation worse for Landlords. We have seen the number of Buy-to-Let mortgage products reduced from over 3,000 to less than 175. At the same time lenders have increased their rates in real terms and significantly increased the costs associated with Buy-to-Let mortgages.

The Government has pledged support for tenants who are made homeless from repossessed property but they have been silent about the one of the major causes of repossession - the cost of Buy-to-Let mortgages. It is our belief that even modest help for Landlords would prevent the majority of these repossessions happening in the first place.

We call on the Government to force the banks they have bailed out to begin lending to Landlords again. At the same time those banks should pass on the rate cuts in the same way as they are being told to do to residential customers. In short, the Government must ensure that an element of competitiveness returns to the Buy-to-Let mortgage market. Without it many more Landlords will face financial ruin and many more tenants will become homeless - and that will benefit no-one.

For more information about the Pass the Rate Petition please click here - Pass the Rate.

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