Charlie Weston: Frenzy of investor lending helped create mess we're in
MANY people will scratch their heads and wonder what is going on when our banks feel that funding investors to buy property is a good use of their scarce credit.
After all, the frenzy to finance buy-to-let investors with low interest mortgages and attractive interest-only deals is part of the reason we are in a financial mess.
There are already 147,600 investor mortgages out there, but one in four of them is in arrears. And many of the 100,000 in arrears on the home mortgages also have investor mortgages.