11
May
Buy-to-let mortgage market 'given a boost'
The UK's buy-to-let mortgage market has been provided with a boost
thanks to an announcement made by one firm.
In a new development, the Mortgage Works is to increase the maximum
loan-to-value on its products to 80 per cent.
This is a rise from the previous upper limit of 75 per cent.
Responding to the move, Lee Grandin, managing director at Landlord
Mortgages, said it is "very good news".
He added: "To move the goalposts to 80 per cent is a fundamental
shift in lenders' attitudes to risk because, of course, their stake
in any property is that much higher."
This means the danger of defaults is significantly raised, he went
on to note.
The expert went on to predict that while the step is unlikely to
create an "enormous uptake" in business levels, it is likely to
increase competition in the market, meaning landlords will have
more freedom when they are selecting loans.
