According to Mortgages for Business, there has been a 138% increase in the availability of buy-to-let mortgages in the market. Although this suggests that the sector is improving, the general perception is that mortgage lending rates for investors who buy-to-let are not likely to improve before 2012.
Lee Grandin, director at Landlord Mortgages, said that some amount of lending is still being done in a very restricted market.He also added, “In this last quarter, while we have seen products improve, there is no demand for taking those products on because you still require a very large deposit to make the purchase work,”
However, he agrees that the financial services sector is likely to improve and offer competitive deals only in 2012.
According to last month’s Council of Mortgage Lenders, the number of buy-to-let mortgages for the second quarter was 24,900 – 13% more than the 22,000 that was booked in the first quarter of the year.