Over the last month we’ve seen some encouraging signs in the buy to let market as a number of lenders have made improvements to the mortgage deals on offer to landlords.
The credit crunch saw mortgage lenders leave the buy to let market in droves, whilst those brave enough to stay severely tightened their lending criteria and hiked rates on offer in an attempt to reduce their exposure to this riskier part of the property market.
Recently however there have been signs that things are slowly improving and the number of mortgage deals available to landlords is on the up.
We’ve seen more deals on offer up to 75% loan to value (LTV) and some are even available up to 80% LTV from the Mortgage Works, the specialist lender of the Nationwide Building Society.
Lenders such as Clydesdale, Kensington and Manchester Building Society have all returned to the buy to let lending market this year and in the last month we’ve seen two completely new lenders launch into the market – Aldermore and Precise.
And from next week, Platform (part of the Cooperative) is cutting the rates on its buy to let deals.
Despite these improvements, the buy to let market is still a shadow of its former self and getting a mortgage is still tough for many landlords – particularly those new to the rental property game.
However, if you have a rental property and are keeping hold of it, then keep an eye on the mortgage deals available – if the recent rate improvements continue, there may be a good opportunity for you get a new deal and cut your mortgage interest payments.