Quite often, these individuals are not even aware that they are in danger of being evicted until it is too late. In the case of a buy to let mortgage, the eviction notice can come even when your rate is fully paid up due to the fact that the owner has difficulties with the buy to let mortgage. Despite this somewhat skewed behavior, this is the normal operating procedure when buy to let mortgages go south and a foreclosure is necessary.

Because of the vulnerability of renters in a buy to let mortgage situation, it is a good idea for these types of people to understand what their rights are and make every effort to ensure that they have some type of backup plan in case the unthinkable should happen.

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Adam Sampson, chief executive of Shelter, said: “These figures show the shadow of repossession is no longer just cast over homeowners, but also thousands of innocent renters who have no idea how close they are to eviction.

“Sadly, the impact of repossession can be even greater for tenants, who, despite paying rent on time, can find themselves with very few rights and the first they even know about it is when the bailiffs start banging on the door.”

Director general of the CML, Michael Coogan, comments: “The shortage of mortgage funding is creating similar problems for buy to let landlords as it did for other borrowers. However, we expect the rental market to remain underpinned by strong demand, partly because some people who would like to buy a home are being forced to carry on renting for now.”

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“Those landlords wishing to remortgage buy to let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates,” stated Louis Cumings of MoneySupermarket,

“This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate.

“With property prices falling though, there may well be many landlords having to sell their investment at a loss.”

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Louise Cuming of MoneySupermarket, said: “These are worrying times for tenants, landlords and developers. With the cost of living spiraling out of control, tenants are unlikely to be willing to wear increased rental demands.

“Those landlords wishing to remortgage buy to let properties will find it difficult, with lenders demanding sizeable deposits or charging higher rates.

“This could force landlords to re-evaluate whether it is worthwhile staying in the sector in the current climate. With property prices falling though, there may well be many landlords having to sell their investment at a loss.”

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“For the vast majority of landlords, a slow housing market is nothing new.” explains John Heron, managing director of Paragon Mortgages. “They recognise the counter-cyclical nature of buy-to-let and many landlords have held property through previous housing cycles. Falling prices are spooking first-time buyers and they are delaying house purchase, with tenant demand at high levels as a result.”

“We’ve been able to make these reductions thanks to solid improvements in SWAP rates,” said Andy Gray, head of mortgages at Woolwich. “Thanks to these improvements, last week we launched market leading fixed and tracker residential mortgages. Now better SWAP rates have enabled us to substantially reduce rates on some of our most popular buy-to-let mortgages.

“The rate change is good news for the less experienced buy-to-let investor. Much more than professional landlords, they have been deterred from taking part in the market by recent credit conditions.”

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“For the vast majority of landlords, a slow housing market is nothing new.” explains John Heron, managing director of Paragon Mortgages. “They recognise the counter-cyclical nature of buy-to-let and many landlords have held property through previous housing cycles. Falling prices are spooking first-time buyers and they are delaying house purchase, with tenant demand at high levels as a result.”

He concluded, “During the downturn of the early 1990s we witnessed mass (re)possessions because there was little alternative to house purchase and young buyers had borrowed above their means. Today’s modern and vibrant private rented sector provides people with a viable alternative to owner occupation and buy-to-let provides housing for young people who would otherwise have little choice but to buy and be financially stretched.”

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Louise Cuming, of moneysupermarket.com, said: “Lenders are closing the door to risk, with the gap between the haves and have nots becoming greater.”

Francis Ghiloni, of mform.co.uk, said: “Lenders are becoming more cautious about interest-only mortgages because of worries about house prices, Our experience is that, increasingly, borrowers are becoming more cautious too.”

Melanie Bien of Savills Private Finance said: “Some lenders have tweaked their mortgage criteria in the past week to reflect tougher market conditions. These moves will make it harder for borrowers to get the financing they need but it could be argued that the lender is taking a pragmatic approach to rising prices which other lenders may well adopt.”

“In any housing market downturn, it is important to reduce your mortgage if you possibly can,” says Melanie Bien, a director of independent mortgage broker Savills Private Finance. “If property prices fall, the threat of negative equity – where your mortgage is greater than the value of your home – grows. By reducing your mortgage, you reduce this risk.”

David Hollingworth of London and Country added, “If a bonus is an integral part of your income – and you will need to draw on that money at some point – you can still benefit by offsetting it, while retaining the ability to withdraw it when you need.”

Richard Morea, at London & Country Mortgages, said: “A lot of people are, understandably, asking themselves if they should be buying at the moment. You can fix your rent for the next six months, save for a higher deposit, sit it out while interest rates go up and watch house prices fall. I can see no reason why a first-time buyer should want to buy in this market. If lenders are forced to charge lower fees, it’s likely that the underlying interest rate will rise.”

Ray Boulger at John Charcol noted, “Today, lenders are reluctant to accept minor blemishes in the way they did in the past. They are taking a more restrictive approach. Demand that can be met for new credit is now broadly in line with supply.”

Moneyfacts Mortgage Expert Darren Cook stated, “If the current economic climate persists, it is not unreasonable to predict that we may see a situation where a higher proportion of borrowers are on their lender’s SVR, rather than on an actual mortgage deal.With lenders such as ING Direct (UK) having an SVR as low as 5.64%, this isn’t bad news for all customers. If the Bank of England maintains its current base rate level, or indeed drops it further, the lender’s SVR rates will become increasingly attractive.

“Many lenders are realising that their SVR is a more viable product option in today’s market and as such, lenders including Royal Bank of Scotland, Woolwich, Halifax, Lloyds TSB and Cheltenham and Gloucester have all stopped offering their SVR to new customers.”