Almost as quickly as the slowdown towards the end of 2011 took the wind out of our sails and made it look like lenders were starting to see the need for caution in buy to let again, 2012 blew around and high loan to value competition came back in the form of 80% LTV buy to let mortgage market. Where only The Mortgage Works stood alone now several lenders battle for the right applicant with the right property even with just a twenty per cent deposit.
It should take nobody by surprise that one of the first lenders to break ranks in 2012 was Aldermore Bank. Unlike most specialist lenders they have their own savings book and do not depend heavily on buying funds on the markets. This has given them a huge amount of additional flexibility since their launch into the buy to let and residential mortgage market and they have used that to good effect picking up some profitable niches and driving significant volumes of business. Already one of just a small party of HMO Mortgage Lenders they now add themselves to the elite group of lenders competing for high loan to value buy to let mortgages. With their flexible underwriting and common sense approach there’s little doubt that if one can lend profitably at 80% in the current market then Aldermore will find the way to do it.
The small but agile Leeds Building Society have also quickly pounced on the opportunity to up their buy to let loan to value to 80%. Perhaps more of a surprise than Aldermore in some ways as their previous maximum had been just 70% but when you consider they have always been on the right side of good lending opportunities it shouldn’t really be a surprise to see them making a move in one of the big growth sectors for 2012 – the buy to let market.
Kent Reliant bring some great products to the table – sometimes even able to lend at 85% LTV. They are restrictive in terms of product availability and distribution so clients will need to ensure they approach a suitably specialist broker to gain access. In recent months they have started to become the most innovative lender in the buy to let market attacking some of the niches of the big players and carving out some little ones all to themselves. It would be unwise to underestimate their impact in 2012.
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