Up To 85% Loan To Value (LTV) Buy To Let Mortgages
85% LOAN TO VALUE (LTV) BUY TO LET (BTL) MORTGAGES
2 Years 85% LTV BTL Market round up
85% Loan to Value Buy to Let mortgages are currently very limited compared to before the crash eight years ago.
In fact, for the last two years, there has only been one lender offering 85% Loan to Value on a BTL Mortgage. Give our advisors a call, to discuss the latest up to date 85% BTL rates.
Over the last two years, we have seen an increasing number of BTL lenders lending up to 80% loan to value. Today, there are nine BTL lenders offering 60 mortgage products to 80% loan to value.
The mortgage market continues to become competitive at the lower loan to value BTL mortgages. When mortgage lenders do not want to cut any further, the lenders’ criteria can be expanded to include higher LTV mortgages. I suspect there will be half a dozen buy to let mortgage lenders offering BTL mortgages to 85% LTV by the end of 2015.
However, you MUST consider the rental income to ensure the mortgage advance is affordable under the Buy to Let mortgage lenders ‘rental affordability’. Most mortgage lenders assess the rental income against the loan advance on an interest only basis. This ensures the rent covers the monthly mortgage payment plus 25%. The remaining 25% leaves an amount to cover additional landlord letting costs, rental voids and some profit.
This is in addition to mortgage lenders requiring evidence that you have a personal income to cover personal commitments, or typically a minimum £25,000 income.