Buy-to let lending criteria 'will keep easing'

By Jonathan Dawes, Wed 11 Aug 2010 - Published in Mortgages

The lending criteria applied to buy-to let mortgages will continue to ease in the coming months, an expert has predicted.

David Whittaker, managing director of Mortgages for Business, pointed out that weak credit profiles and a lack of loans offering loan-to-values (LTVs) of 85 per cent have led to a lack of buy-to-let investment.

However, he noted that the situation is improving, as the number of buy-to-let companies supporting limited company and house in multiple occupation lending has risen from zero to three in the past year.

"Criteria has improved significantly in the first half of 2010 and will continue to ease gently to year end," the expert added.

However, Mr Whittaker claimed that it will take some time for a deal to emerge in the market which beats the 80 per cent LTV product that The Mortgage Works introduced in the second quarter of the year.

Recent research from Upad found that 62 per cent of landlords feel more confident about the rental market than they did last month.

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