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The investment property market is not the creature that it was even a year ago. Rental incomes have not increased at the same rate that property values have.

In addition, in April 2007 landlords had to contend with new tenancy deposit laws, on top of being the first at whom the finger of blame is pointed when the supply of property for first time buyers dries up.

As if keeping a healthy property portfolio was not challenging enough, the credit crunch then forced lenders to pull out of any higher risk mortgage deals, with some even pulling out of the buy-to-let mortgage market all together, leaving landlords' financing options looking somewhat sparse. These are the times at which your clients relish your knowledge and advice, and will return to a broker that they trust knows their stuff.

This year, it cannot be taken for granted that property in the UK will increase in value. As such, most lenders have slashed the maximum loan-to-value they will go to. Particularly hard hit are new-build flats, partly because this property type is more likely to be overpriced initially and because a glut of them on the market reduces rentability. For example, Chelsea will only lend up to 50 per cent on new build flats and Heritable have stopped lending on them at all.

What to do? In this market, landlords should absolutely view buy-to-let properties as a long-term investment so any equity increase is a bonus. A longer-term mortgage deal, such as a five-year tracker, will allow more time for properties to potentially increase in value, before a remortgage is due. If you have a relationship with the client as early as the property search, you can advise them that new builds are more difficult to mortgage unless the borrower has a substantial deposit. Developers are offering some ostensibly generous discounts and contributions now, so it is also worth making clear that the property needs to be sufficiently unique in design and location that there is little competition for the rent. Clients that are due a remortgage but are concerned that their investment may prove a costly one this year, can of course remortgage to a product with no early repayment charges so that they would prefer to keep their option open to sell.

It was possible, this time last year, to borrow up to 90 per cent of an investment property, but most lenders have now announced reductions in their maximum loan-to-values as low as 75 per cent. For example, Cheltenham & Gloucester, Lloyds and Capital Homeloans have moved from 85 per cent to 80 per cent for buy-to-lets, Mortgage Express from 90 per cent to 85 per cent, Skipton and the Mortgage Works down to 75 per cent.

What to do? Your advice here can make a difference to how your clients manage their new mortgage. Making capital overpayments to reduce the mortgage debt is normally the solution if future maximum loan-to-values are in question, but with a BTL, this could affect their tax relief, so discuss the benefits setting up a savings account in which any spare rent can accrue, for emergencies and to reduce the loan-to-value when the time to remortgage comes. Even if your client can borrow the maximum they want, make them aware that they might not have the option to remortgage at the high loan-to-value in two years' time, and property cannot be relied upon to increase in value. A bigger deposit is the order of the day here, but under no circumstances should clients be encouraged to put their own home at risk by borrowing excessively from it to fund an investment.

The need for a safety margin between rental income and the mortgage interest payment is now creeping back. Lenders are moving away from accommodating low rental incomes with low interest rates subsidised with high arrangement fees, or asking that rent merely covers the mortgage payments. Lloyds and Cheltenham & Gloucester have increased their rental cover to 100 per cent at 7.25 per cent compared to a previous 6.5 per cent. This will be a common trend as lenders avoid repossessions by insisting that landlords have that little bit extra every month to put away, for the odd vacant month or repair.

What to do? Some lenders, including Natwest and Lloyds, will consider using excess earnings income to supplement rental income. If landlords have multiple properties, many lenders can treat them as a portfolio, so properties with higher rent can be used to supplement those that are falling short. Do not be afraid to offer your clients some obvious advice. If they put in the elbow grease and make the personal effort to make the property genuinely attractive for viewers and valuers, that extra £50 estimated rental income a month will be vital.

Lenders' cost of borrowing has increased, so buy-to-let interest rates have increased by more than one percent in many cases.

What to do? Affordability should be the priority so whatever mortgage rate you recommend needs to translate into affordable monthly payments, even at SVR. If rental income is too tight to remortgage look at fixed rates: the margin on many tracker rates are 1 per cent higher than last year but most fixed rates have only moved by around 0.2 per cent. If achieving a rate low enough to be covered by modest rent, results in such high arrangement fees that they can only be added to the loan and genuinely jeopardise their chances of a remortgage next time, some clients need a gentle reality check; that their investment just might not be cost effective.

As lenders pull out of the sub-prime and the buy-to-let markets, it is inevitable that there will be little mercy for borrowers who fall into both camps.

What to do? The message to borrowers cannot be strong enough here; they need to go back to basics with their credit conduct. It is obvious that making mortgage payments in full and on time, for everything, is vital. Make it clear that a missed mortgage payment on a buy-to-let wrecks your client's credit rating as much as one on their residential mortgage.

But, it is not all doom and gloom. Some lenders, typically the balance sheet lenders who were not relying on the securitisation markets for their own funding, are continuing with business as normal, and this is where the deals can be had. Norwich and Peterborough for example, has increased the maximum facility on portfolios to £5m and rent can be spread between the properties.

While the choices for buy-to-let borrowers are now fewer, there are still lenders keen for business, and with the goal-posts now shifting daily, borrowers need our help to manage their applications, and give them that vital heads-up if the rates are being withdrawn.

Katie Tucker is the technical manager of Charcol