LTV lending hits 'solid' 80%'
27th Jan 2012
There has been a rise in the number of mortgage lenders offering more than 20 buy to let mortgages, with loan to values (LTVs) up to 80 per cent, according to new data from the sourcing tool Mortgage Flow.
According to the organisation, from December 2008 to May 2010 the highest achievable LTV for a buy to let mortgage was just 75 per cent, until Mortgage Works introduced a limited range of products to 80 per cent LTV, though investors then had to wait another nine months for another lender to do the same.
That particular organisation was Kensington, which introduced a solitary product to a headline reaching 85 per cent LTV, and since then five other lenders have introduce LTVs of at least 85 per cent, though Kensington has since withdrawn.
Commenting on the figures, David Whittaker, managing director at Mortgages for Business, said it 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," he added.
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