BTL mortgage update

The latest figures published by the Council of Mortgage Lenders (CML), showing continued growth in the buy-to-let mortgage market, offer good news for landlords looking to purchase new properties. The Council of Mortgage Lenders reported a 33% increase in the value of buy-to-let lending in quarter three 2010 compared with the same period last year, and a similar trend in loan size was seen in the latest analysis of Property Hawk Mortgages applications.

The increase in mortgage value is likely to be a reflection of the gradual recovery of property prices and the availability of some higher loan-to-value buy-to-let mortgages (up to 80%).

New and established lenders have entered the market providing more products, increasing competition and better choice for property investors. There have also been announcements of further entrants to the market including a high street bank and more specialist lenders.

There has been a fair amount of movement in the buy-to-let mortgage market recently, with BM Solutions releasing some market-leading products for one-week only and Godiva providing some attractive no-fee deals for a short period too. Short-term offers may become more commonplace in the buy-to-let mortgage market as lenders endeavour to micro-manage their lending quotas.
Landlords would be wise to keep a close eye on the mortgage market if they are looking to purchase new properties, as the market-leading rates may only appear for brief periods.

Property Hawk Mortgages provides a free online buy-to-let mortgage finder which is updated daily, giving access to the latest deals available.

Click here to use our free buy-to-let mortgage finder