As the buy-to-let mortgage market has expanded more lenders are now offering higher loan-to-value products. The provision of higher LTV finance has, unsurprisingly, resulted in a noticeable rise in the average LTV for buy-to-let loan offers received by TBMC during quarter three, and they recorded that the average LTV was 72.63% compared with 67.30% in the previous quarter.
TBMC also noted that average fixed rates have gone down but trackers still more popular, with 60% of applications recieved in Q3 being for variable rates. The average fixed rate chosen during this period fell from 5.06% to 4.88% and the average variable rate rose from 4.10% to 4.40%.
The split between purchases and remortgages was equal, with 50% of applications on each.
Andy Young, chief executive of TBMC, comments on the Index’s findings:
“The buy-to-let mortgage market has continued to improve throughout 2012 with more lenders and products now available for brokers and their landlord clients to choose from. This has led to greater competition in the market and there are currently some excellent deals available. There has also been some softening of criteria by some lenders, increased LTVs and a lowering of rates."
