Property buyers and investors in the United Kingdom are now enjoying increased LTV rates from lenders for buy-to-let properties. Mortgage Flow reports that there are now more than 20 buy-to-let mortgage products with LTVs at 80%, whereas the previous high mark of 75% lasted since 2008. There are six lenders offering products at the new level and include Clydesdale Bank and Kent Reliance Banking Services. Experts believe the trend is a response to the growing popularity in the rental market, and many lenders see buy-to-let mortgages are more secure than home lending. For more on this continue reading the following article from Property Wire.
There are now six mortgage lenders offering more than 20 buy to let mortgages with LTVs up to 80%, according to new figures.
Data from Mortgage Flow, Mortgages for Business’s bespoke buy to let mortgage sourcing tool, shows that landlords and investors have more choice.
From December 2008 to May 2010 the highest achievable LTV for a buy to let mortgage was just 75%. The first sign that the tide was about to turn came from The Mortgage Works in May 2010 when it introduced a limited range of products to 80% LTV.
Investors then had to wait another nine months for another lender to do the same. On that occasion the entrant was Kensington who introduced a solitary product to a headline hitting 85% LTV. Kensington has since withdrawn from buy to let lending.
The six lenders that offer 80% LTV or above now are Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgages and Clydesdale Bank.
‘This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than home owner lending,’ said David Whittaker, managing director at Mortgages for Business.
‘Between them, there is a good range of products on offer from two year discounted trackers to five year fixed rates. Some even come with flat arrangement fees which really start to make sense for investors looking to borrow larger sums,’ he added.
This article was republished with permission from Property Wire.