80% L to V mortgage from Mortgage Works
After months of stagnation in the buy to let mortgage sector there was some good news for buy to let investors as The Mortgage Works increased its loan-to-value limits to include a product at 80 per cent. This will allow those with deposits of 20 per cent or more mortgages at a better rate of interest than those in the recent past. The product will only be available to existing buy to let landlords with their lowest rate of 4.69% fixed for one year.
Forecasts for buy to let lending shows a clear increase in available funding for landlords. Lenders are expecting the sector to increase to almost double the volume of past lending from £8.5 billion in 2009 to £25.6 billion by 2014.
Many buy to let commentators are calling for the buy to let market to be allowed to expand as more and more people are unable to enter on to the property ladder or have had to give up their homes due to financial pressures. There are calls for the incoming government to alter the tax system to encourage large scale house building from institutions such as pension funds and insurance companies in order to assist and grow the private rented sector.
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