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Buy to let sector sees rash of new mortgages

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 Kensington has since withdrawn from buy to let lending.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.

See the Property Wire Finance Update section for more information on mortgage offers