Options grow for landlords

Investors who have struggled to get buy-to-let finance on competitive terms since the credit crunch will be pleased to hear that the outlook is appearing more positive.

One lender, whose deals are only available via brokers, has eased its criteria. It has increased its maximum loan-to-value (LTV) from 75 to 85 per cent and reduced its rental cover from 125 to 120 per cent.

The rates on offer are not market leading but there or thereabouts. Borrowers have a choice of paying a flat fee or a percentage of the mortgage amount. First-time investors are welcome, as well as more experienced landlords.

Meanwhile, other lenders are planning on entering the market. Yorkshire Building Society has announced it will offer buy-to-let loans this year, while Santander is also poised to enter the market in 2011.

Melanie Bien, director of independent mortgage broker Private Finance, says: ‘Another lender easing its criteria and raising its maximum LTV is very good news for the sector. Rental demand is strong and rents are rising so investing in property is a good bet. It is time more lenders realised this and offered the mortgages that landlords demand.’

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