BTL lending in new-found confidence: Mortgages for Business

David Whittaker, managing director of Mortgages for Business, said the LTV levels were a sign of confidence in the BTL sector.

Mr Whittaker said the six lenders offering 80 per cent LTV or above are: Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgages and Clydesdale Bank.

He 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.”

Matthew Rich, IFA for Bath-based Alan Seward Financial Services, said: “This figure is still not very high. It still looks like defensive lending, which does not expose the banks to much risk. Nobody wants to go back to the days of 110 per cent lending, but 90 per cent is healthy.”