Residential landlords have sheltered themselves from rising interest rates and higher borrowing costs by reducing the gearing on their portfolios, research from specialist buy-to-let lender Paragon has revealed.

AWD MoneyExtra

The average landlords’ portfolio gearing – the proportion of borrowing to the level of equity in the portfolio – has fallen from 48% in 2002, to 38% in 2007. And the level of gearing for landlords with 3 or fewer properties is even lower at just 25%, quashing suggestions that these operators will bail out of the buy-to-let market if rental yields contract – full article