First time buyers struggle to obtain mortgage deals
A recent survey carried out indicated that first time buyers are finding it difficult to get onto the property ladder. Alan Harper at Moneyfacts.co.uk, Senior Analyst pointed out why existing buy to let investors are finding it easy to obtain a competitive mortgage deal.
Data gathered from the Council of Mortgage Lenders this week has also shown an increase in the number of loans taken by buy-to-let landlords throughout 2007 period.
Mr Harper commented: “Moneyfacts.co.uk stated that towards this time last year, the average buy-to-let LTV across all prime products was 82.8 per cent: today it is 80.1%. Based on taking an average LTV on an ‘average’ house price in February 2007 of £189,197, a borrower would have required a contribution of £32,542.“
A percentage of the market are offering 75 per cent LTV or less. Figures suggest that most lenders are competing for less risky business and rather give a chance to landlords with major portfolios, which can afford to place a larger down payment. With this being an advantage, existing investors will have chances to take on the most competitive rates.
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