More buy-to-let mortgages expected in 2012

by Aaron Strutt

Jan 06 2012

Mortgage lenders have started the year in a positive way with the introduction of more buy-to-let mortgages and the easing of some lending criteria. Trinity Financial expects lending to landlords and property investor's to rise this year.

Paragon Mortgages launched 44 new rates yesterday and Godiva Mortgages introduced some new options for those wanting to take a mortgage without tie-ins.

Just before Christmas Woolwich temporarily pulled out of the buy-to-let market because they had been inundated with mortgage applications and they are still experiencing technical problems.

Building Societies in particular are looking to lend more to investors and Abbey for Intermediaries have big plans to be one of the top buy-to-let lenders. They made their long awaited return to the sector late last year.

Aaron Strutt, a broker at Trinity Financial, says: “We are expecting more lenders to offer buy-to-let mortgages, but you are still likely to need at least a 25% deposit.

“There are further signs that criteria is easing and NatWest has made an unusual decision to lend more to wealthy investors. Applicants earning £50,000 a year will be able to borrow considerably more money than those earning the minimum requirement of £20,000. The bank thinks that they will be in a better position to cover any void periods through earning more.”

Godiva Mortgages offers the lowest two-year fixes at 3.65% and it has a £2,249 arrangement fee.  They also have a five-year fix at 4.99% and it has a lower arrangement fee at £1,249. Both mortgages require a 35% deposit.

6 January 2012