Lenders relaxing up-front buy-to-let payments

Posted: 08 Mar 2007 10:40:56 GMT

Many lenders are relaxing the amount of capital that they require as down payment on buy-to-let mortgages, a survey for Moneyfacts has claimed

Many lenders are relaxing the amount of capital that they require as down payment on buy-to-let mortgages, a survey for Moneyfacts has claimed.

The average buy-to-let mortgage loan-to- value has grown from 74 per cent to 81 per cent in recent years and the number of 90 per cent loan-to-value deals being launched has risen sharply.

"Six months ago, buy-to-let products to 90 per cent loan-to-value were very few and far between," said Alan Harper of Moneyfacts.

"This year, in February alone, Alliance and Leicester, Bank of Ireland Mortgages, Freedom Lending and Platform have all launched new products to 90 per cent."

The number of lenders offering the deals has now risen to 11, although Mr Harper said that most deals were priced to reflect increased risks and were not necessarily attractive.

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