Northern Rock backs buy-to-let mortgage market

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Northern Rock backs buy-to-let mortgage market

Mon 7th Feb 2005

Major lenders like Northern Rock appear confident that the prospects for the buy-to-let market remain strong.

So sure are many lenders, they are launching new products that allow customers to borrow a higher percentage of a property's value than conventional products.

Traditionally buy-to-let lenders have been offered loan-to-value ratios of around 75 per cent but ratios have gradually crept up with Northern Rock and GMAC RFC offering loan-to-value ratios in excess of 85 per cent.

Furthermore, according to the 'This is Money' website a 90 per cent loan-to-value buy-to-let mortgage is expected to be launched this week.

Commenting on the trend, Lee Grandin, managing director of buy-to-let broker Landlord Mortgages, stated: "It is a positive move because it shows lenders are confident that prices aren't going to soften."

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