Buy-to-let deals 'will not be competitive until 2012'

Posted: 21 Sep 2010 10:42:51 GMT

Buy-to-let mortgage lenders will not increase the competitiveness of their rates until at least 2012, one specialist has indicated.

Director of Landlord Mortgages Lee Grandin said it will probably take approximately two years before lenders are able to offer more attractive deals.

"In this last quarter, while we have seen products improve, there is no demand for taking those products on because you still require a very large deposit to make the purchase work," he added.

Mr Grandin noted the majority of people do not have enough cash to put down and despite the fact there are more products on the market, there is not one that would persuade someone to come off their current rate and switch to save cash.

He claimed house prices are weak because there is very little lending being processed at this moment in time.

According to recent figures from the Council of Mortgage Lenders, the value of buy-to-let deals in the second quarter was £2.4 billion, of which £1 billion was remortgaging.
 

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