"No question" that loan-to-values have improved ? buy to let mortgages

26 September 2008

There is "no question" that the growth in the rental sector has led to better deals on buy to let mortgages, it has been claimed.

Independent financial advisor John Stewart also told the Financial Times it is "understandable" that those with buy to let mortgages are increasingly opting for variable rates.

He added that it could be "unwise" to commit to fixed rates in the current economic climate.

It comes after figures from Legal & General showed that the average loan-to-value for the buy to let sector was 73 per cent in the third quarter, compared to 60 per cent in the residential market.

In addition, the amount of landlords choosing variable-rate deals rose from 24 per cent to 35 per cent.

Abbey recently announced that it was cutting rates across its portfolio of mortgages - its two to three-year variable loan was lowered to 6.44 per cent.