Increase in availability of best rate mortgage products for buy-to-let landlords.
Banks and building societies are making more best rate mortgage products available to landlords who want to increase their property portfolios. More high LTV mortgages are now being made available however, investment property buyers are being warned to look at the products carefully because some of lenders latest offers may not be as quite competitive as they first appear.
Leeds Building Society and Aldermore have increased their maximum LTV ratio to 80 per cent however, there are actually few areas of the UK, where rental yields are sufficiently high to enable landlords to reach the best rate mortgage criteria for borrowing at 80 per cent LTV.
Two new entrants to the mortgage to let lending market have made their deals more attractive for property investors. The first is the Yorkshire Building Society who have expanded its range to cover all of England and Wales and the second is Santander who has made its rates more attractive,s following its rather uncompetitive entry into the mortgage to let sector at the end of 2011. Mortgage lenders appear cautious in lending to standard residential borrowers, however the same lenders are choosing to targeting the mortgage to let sector which means that 2012 is likely to be good year for investment.
Miles Shipside from Rightmove commented saying that there has been a three fold increase in best rate mortgage to let products, compared to two years ago. Most alternative investments are providing a low yield therefore 2012 is likely to be a profitable year for investor landlords who want to expand their property portfolio. Buying property for rental purposes is a commercial investment and experts are warning borrowers to conduct thorough research before making a final decision.
