It appears that the demand for private rental accommodation may soon be eased a little, as prospective residential landlords find buy to let mortgages slightly more attainable. That is the message emanating from one expert in the loan sector.
According to David Whittaker, the managing director of Mortgages for Business, there has been a noticeable improvement in the lending requirements set out by Banks and Mortgage Brokers since the beginning of the year. He went on to say he expected the process to continue throughout the rest of this year and on into 2011.
Mr Whittaker said although there was an improvement in the number of products available for buy to let investors, he did not foresee any sudden flood of new mortgage deals becoming available as there was no longer any great competition in the sector. Speaking about individual companies he said “Obviously they have targets and plans to achieve but they don’t react too quickly to what other lenders are doing.”
He also anticipated sizeable deposits would remain in place, observing the best Loan to Value (LTV) deal around at the moment is 80%, which still represents a massive deposit for landlords looking to purchase property in the South East of the country.
The slight increase in mortgages available, coupled with the easing of requirements surrounding them, probably reflects the mood of optimism portrayed by landlords in the latest survey by Upad. The survey revealed a big month on month increase in landlord’s confidence in the future prospects for their business. Landlords should always factor in the cost of landlord insurance when purchasing new properties.