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85% Buy-to-let Mortgages are Back!

February 15th, 2011

Kensington Mortgages has launched a new range of buy-to-let deals with loan-to-values up to 85%.

Key points are as follows:

  • At 85% LTV there is a two-year fixed rate mortgage at 5.99% with a 2.50% fee and at 80% LTV, customers can choose between a two-year fixed rate at 5.69% with a 2.50% fee or go for a 5.99% rate with a flat fee of £1,499.
  • It has also reduced the rental cover it requires from 125% to 120%.
  • Landlords can choose between a two-year fixed rate mortgage for 5.24% up to 75% LTV, with a 2.50% fee, or opt for the flat fee of just £1,499 and pay a rate of 5.74%.

This piece of news suprised a lot of people, including ourselves here at Alpha Property Investment. The return of 85% LTV on buy-to-let finance is clearly a positive development for the investors and the property market as a whole. The fact that lenders are upping the LTVs reflects their increased confidence in the property market as well as the ability of the clients to keep up the payments on their mortgages.

The rate is slightly on the high side at 85% LTV, but considering it is fixed for 2 years, we believe this is a sensible option for clients looking to minimise capital input and lock in their ongoing mortgage payments.

Having to put in only a 15% deposit is a very attractive proposition for investors and our clients are welcome to talk to one of our partner mortgage brokers to check on their eligibility on this great new product.

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