11 May

Buy-to-let mortgage market 'given a boost'

Buy-to-let mortgage market 'given a boost'

The UK's buy-to-let mortgage market has been provided with a boost thanks to an announcement made by one firm.

In a new development, the Mortgage Works is to increase the maximum loan-to-value on its products to 80 per cent.

This is a rise from the previous upper limit of 75 per cent.

Responding to the move, Lee Grandin, managing director at Landlord Mortgages, said it is "very good news".

He added: "To move the goalposts to 80 per cent is a fundamental shift in lenders' attitudes to risk because, of course, their stake in any property is that much higher."

This means the danger of defaults is significantly raised, he went on to note.

The expert went on to predict that while the step is unlikely to create an "enormous uptake" in business levels, it is likely to increase competition in the market, meaning landlords will have more freedom when they are selecting loans.

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