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26th May 2011

Buy-to-let mortgage products double in year

In Q1 2010, an average of 142 products were available to buy-to-let investors. This figure has more than doubled to an average of 298 products in Q1 2011 latest research reveals.

This rise is due in part to the entrance (or re-entrance) of four mortgage lenders to the market but can be attributed mainly to lender response to high demand from the investor market and an easing of lending criteria which has allowed for more diverse product ranges.

Average Loan-to-Values for buy to let transactions are now at 66%, three percentage points up (63%) from the end of 2010 and six percentage points up (66%) from the end of 2009. There has also been an easing of criteria for Houses in Multiple Occupation (HMO) transactions. Average LTVs for these mortgages are now 63% compared to 61% at the end of 2010. 

David Whittaker, managing director at Mortgages for Business, said: "As the owner-occupier market continues its slow ambling advance through no-mans land the private rental sector is flourishing. Unprecedented demand from renters is encouraging professional landlords and investors to grow their portfolios and this demand has been met to some degree by lenders expanding their BTL product ranges".