It is a very small part of the market BUT it shows a trend. The number of subprime buy to let mortgages has fallen from 1383 in July to 149 with only 4 lenders in the market.
This shows a trend as the credit crunch extends. Lenders will move away from anything seen as risky. Loan to Values will fall. Criteria will tighten. Rates will increase. Income multiples will fall.
Demand will fall as people cannot get mortgages they could in the past.
Demand will fall as others are concerned they will not be able to remortgage.
As mentioned before many will not be able to remortgage and will have to stay at high rates.
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