Lending criteria 'will ease on buy to let mortgages'

10 August 2010

Written by Jeni Browne

The criteria used by providers to approve buy to let mortgages will "continue to ease", one expert has said.

David Whittaker, managing director of Mortgage for Business, stated that the situation is "improving" for portfolio investors, as there are almost twice as many deals available now compared with one year ago.

However, in terms of loan-to-value rates, he did not feel that the 80 per cent product launched in the second quarter by The Mortgage Works will be beaten in the near future.

Providers, he explained, are no longer trying to introduce better deals than their rivals as competition in the market is currently at a low level.

"Some lenders are struggling to access funding," he continued. "[They] are choosing to restrict distribution to small panels of brokers; we are fortunate to have access to all these lenders."

Mr Whittaker's comments follow advice from property guru Andreas Panayiotou, who said in an interview with the Mail on Sunday and This is Money that investment in housing is currently "very safe".

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