New buy to let mortgage hits market

10 May 2010

Written by Michael Aglony.

A new buy to let mortgage product with an increased loan to value (LTV) of 80 per cent was announced today by lender the Mortgage Works.

Trace Pearce, head of products at the company, said this level of borrowing was designed to help landlords who were not able to put down a large deposit.

The product range extends from one-year fixed rate mortgages to five-year fixed rate options and also includes a one year tracker.

A one-year fixed rate home loan at the new 80 per cent LTV is available at a rate of 4.69 per cent with a 2.5 per cent arrangement fee, 5.69 per cent with a 1.5 per cent arrangement fee, or 5.99 per cent with a flat fee of £1,795 if a mortgage of £250,000 or less is taken out.

Other fixed-rates are available as 18-month, two-year and three-year loans starting at 4.79 per cent.

This comes as Alan Clarke, UK economist at BNP Paribas, last week predicted that the Monetary Policy Committee would do "absolutely nothing" to raise interest rates from their current low level when it met today.

Why not take a look at our best Buy to Let Mortgages and make an enquiry online now.