'Fundamental shift' for landlords has occurred

Date:Wednesday 12th May 2010
Author: Max Freedman

A recent move by one buy-to-let mortgage lender signifies a major change in the industry for the better and should help landlords get funding, one sector commentator has asserted.

Lee Grandin, managing director at Landlord Mortgages, made his remarks regarding the decision by The Mortgage Works to increase many of its buy-to-let offerings to 80 per cent loan to value LTV.

He stated: "To move the goalposts to 80 per cent LTV is a fundamental shift in lenders' attitudes to risk because, of course, their stake in any property is that much higher."

In his view, it will not signal the beginning of a major surge in business, but it does indicate that things are moving in the right direction in the industry.

Mr Grandin suggested the positives that may come out of this move will be increased confidence in buy-to-let deals and potentially more competition among lenders to provide landlords with finance.