Landlords covering more costs with deposits

Posted: 06 Feb 2007 10:26:42 GMT

More than two-thirds of landlords applying for buy-to-let mortgages at the end of 2006 applied for deals of less than 75 per cent loan-to-value, new figures have shown

More than two-thirds of landlords applying for buy-to-let mortgages at the end of 2006 applied for deals of less than 75 per cent loan-to-value, new figures have shown.

The average deposit raised by landlords in this group was £82,000, or 36 per cent of the average purchase price, said the Alliance and Leicester (A&L) figures.

The number of buy-to-let applications was also up 25 per cent during December and the market shows no sign of slowing, added Mehrdad Yousefi of A&L.

"We are continuing to see an increase in buy-to-let applications, with figures on an upward trend right up until year end," he said.

"Investor landlords are seeing a very buoyant market, with the average property purchase price in December at £230,806, 24 per cent higher than the average UK house price in 2006, which stood at £186,035."

More than three-fifths of mortgage applications during December were for two or three year fixed rate deals.

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