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Buy to let rock solid at 80 per cent LTV
There are now six mortgage lenders offering more than 20 buy to let mortgages with LTVs up to 80 per cent,
according to data from Mortgage Flow, Mortgages for Business’s 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 per cent.
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 per cent 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 per cent LTV. However, Kensington has since withdrawn from buy to let lending.
The six lenders that now offer 80 per cent LTV or above are Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgages and Clydesdale Bank.
David Whittaker (top right), managing director at Mortgages for Business, said, “This is great news for landlords and investors and demonstrates the growing confidence of lenders in this important sector who can see that buy to let is more profitable than homeowner lending.”