Clydesdale joins high LTV buy-to-let market

Six mortgage lenders are now offering buy-to-let mortgages with loan-to-value ratios of up to 80 per cent, data from Mortgage Flow has shown.

Between December 2008 and May 2010 the highest offered buy-to-let LTV was 75 per cent.

On 9 May 2010 The Mortgage Works introduced a limited range of 80 per cent LTV products.

Nine months passed before a second lender, Kensington, introduced a similar product.

Although the latter company at the time offered a single 85 per cent LTV, it has now withdrawn from buy-to-let lending.

The six high LTV lenders include The Mortgage Works, Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgage and finally Clydesdale Bank, which today revealed its 80 per cent LTV mortgage.

The most recent addition from Clydesdale Bank brings the number of buy-to-let mortgages with LTV up to 80 per cent to 21.

David Whittaker, managing director of Mortgage for Business, said: “This is great news for landlords and investors and demonstrates the growing confidence of lenders in this sector who see buy to let as more profitable than homeowner lending.

“Between them, there is a good range of products on offer from two year discounted trackers to five year fixed rates. Some even come with flat arrangement fees which really start to make sense for investors looking to borrow larger sums.”

Mortgage Flow is the bespoke buy-to-let mortgage sourcing tool for mortgage broker and packager Mortgages for Business.

Santander subsidiary Abbey for Intermediaries recently expanded its buy-to-let range of products and cut rates of existing products by 0.2 per cent.