Buy-to-let now rock solid at 80pc LTV

Nia Williams

January 27, 2012

This is according to data from Mortgage Flow, Mortgages 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.

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.

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.”

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