Saturday 12 February 2011

New 85% LTV Buy to Let Mortgage Might Kick Start Market

New 85% LTV Buy to Let Mortgage Might Kick Start Market

The past few years have been pretty difficult for investors in the private housing sector. Heavy losses as a result of the financial crisis meant that many banks and building societies stopped selling buy to let mortgage or put their rates up to such a level that it became impossible for would be landlords to make a profit.

The main issue for investors has been the amount of deposit required by lenders. With many lenders asking for upwards of a 35% deposit it was impossible for landlords to expand their portfolio. The turmoil in the private housing market has meant that more and more would be first time buyers are turning to private landlords to rent property. This together with falling house prices has meant that buy to let landlords are able to cash in on the situation. Lets not forgot, where there is demand, there is profit to be made and lenders are starting to see that.

Already some lenders are offering buy to let mortgages with an 85% loan to value which means that would be property tycoons just need to find a more manageable 15% deposit. This is the best loan to value on a buy to let mortgage since before the financial crisis began back in 2007. More demand means more lenders looking to access a profitable market which in turn means more competition and that means lower prices for consumers.

Visit our website www.oxfordhomesdirect.co.uk

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