Buy to let investors to see changes in the mortgage market

13 May 2012 Categories: News

Buy to let investors to see changes in the mortgage market

Just when property investors thought buy to let mortgage options were becoming more favourable one of the largest buy to let lenders has decided to cut their lending by 3%.

The Lloyds Banking Group, which lends to landlords through their subsidiary BM Solutions, has decided to cut mortgage lending across the board, including investment mortgages used for buy to let properties.

On a happier note though, the Co-operative Bank has decided not to scrap their interest-only loans used for buy to let purposes. They will scrap the loan-type for residential mortgages but buy to let investors will still be offered the option for the time being.

The Nationwide, through their specialist buy to let brand, The Mortgage Works, has also provided good news for potential landlords and investors with their new range of deals. The new two-year fixed rate mortgages include:

  • A 60% LTV option with interest rate of 3.39% and arrangement fee of 3.5%
  • A 75% LTV option with 4.99% rate and fee of 1.5%
  • A 80% LTV option with 4.99% rate and fee of 3.5%

Head of group mortgages at Nationwide, Tracie Pierce, commented on the new rates saying; “These improved rates are great news for landlords looking for a new purchase or remortgage deal. Our new two-year fixed rates start from just 3.39%, helping to maximise landlords’ monthly income.”