Data published this week has revealed that there are now 21 buy-to-let mortgages on the UK market with a loan-to-value (LTV) of up to 80 per cent.
Specialist broker Mortgages for Business compiled the figures, which show that a total of six different lenders are offering the buy-to-let mortgages – Aldermore Mortgages, Clydesdale Bank, Kent Reliance Banking Services, Leeds Building Society and Saffron Building Society.
Between December 2008 and May 2010, buy-to-let deals would only be offered with a maximum LTV of 75 per cent. On 9 May 2010 The Mortgage Works launched a limited range of buy-to-let deals with up to 80 per cent LTV – but it was not until the following February that another lender followed suit, with Kensington offering a single BTL mortgage at 85 per cent LTV. That particular lender has now withdrawn from the buy-to-let market, however.
Overall across the UK, there are 486 BTL mortgages on the market, 26 per cent more than were to be found at the same time last year and twice as many as in February 2010. The mortgages have an average interest rate of 4.79 per cent, which is significantly lower than the 5 per cent average in February 2011 and the 5.31 per cent figure for February two years ago. At this time, there were only 243 BTL mortgage deals on the market.
Mortgages for Business managing director David Whittaker argued that the fact that there were now six lenders offering 80 per cent BTL mortgages showed increased confidence in the sector, adding: “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.”