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Thursday, January 15, 2009

Last 85% buy-to-let lender withdraws product

Bad news for landlords seeking high LTV buy-to-let mortgage I'm afraid. The Post Office which were operating a buy-to-let mortgage operated by Bank of Ireland have become the last lender to withdraw a 85% LTV deal. Buy-to-let mortgage deals like the economy, fashion and the economy are all heading back to the 1980's I'm afraid.

Some 93 per cent of all buy-to-let deals have disappeared in the last year, and deals of between ten per cent and 15 per cent, which used to make up 61.1 per cent of the market, are no longer available.

Landlords now really need at least a 30 per cent deposit to get the best deals and even then they are paying a high price.

80% LTV buy-to-let mortgages

There are now only 5 lenders doing a 80% LTV and I expect them to reduce their rate in the coming weeks. These lenders are : Bath BS, Ecology BS, Clydesdale Bank, Northern Bank and the Yorkshire Bank. Landlords who need to access a mortgage with a high LTV shouldn't waste any time in getting an application under way. Otherwise they are likely to find that 80% products will go the same way as the 85% Post Office mortgage pretty damm soon.


bobaloan said...

its hell out there in the financial world at the moment

mortgage deals said...

I don't see any improvement for a long time to come in terms of competitive rates in higher LTV deals.

Adam Hosker said...

Well 85% Buy to Let Mortgages are back, best thing is you can use them for HMO Mortgages too.