'Increased confidence' in the buy-to-let mortgage market

Posted: 11 May 2010 09:57:36 GMT

Mortgage lenders are showing increased confidence in the buy-to-let market, it has been suggested.

Lee Grandin, managing director at Landlord Mortgages, says: "To move the goalposts to 80 per cent [loan-to-value] is a fundamental shift in lenders’ attitudes to risk."

His comments come in response to the recent announcement from the Mortgage Works, which revealed that it is to increase the loan-to-value on its buy-to-let products to 80 per cent.

Mr Grandin states that the new home loan deals are “good news” for buy-to-let landlords and will lead to more competition in the housing market as a whole.

David Whittaker, managing director of Mortgages for Business, advises that many landlords have been unable to expand their property portfolio in the past 18 months, so they will welcome the introduction of higher loan-to-value products.

According to the Bank of England, new mortgage approvals increased to 48,901 in March, compared to 46,882 in February.

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