Buy to let now rock solid at 80% LTV
Friday, January 27, 2012
Published by MILLIE DYSONMortgages | 0 Comments
There are now six mortgage lenders offering more than 20 BTL mortgages with LTVs up to 80%, according to data from Mortgage Flow, Mortgage for Business’s bespoke buy to let mortgage sourcing tool.
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 on 9th 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 Kensington has since withdrawn from buy to let lending.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 as of today Clydesdale Bank.
David Whittaker, managing director at Mortgages for Business, commented:
“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 homeowner lending.
“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