Does anyone know of they still do 85% buy to let mortgages?
Right now – there aren’t any. Every lender I know that is still active in this market has reduced their maximum Loan to Value to 70% or 75%. The problem is two pronged. Firstly, you currently have BTL lenders who refuse to lend above 75% Loan to Value. This on its own is a problem. This is further compounded by the fact that valuers seem to be arbitrarily under-valuing properties, making the release of equity from your existing portfolio quite difficult to say the least! To be perfectly honest, unless you have lots and lots of equity or raw capital to play with, you are going to find expanding your portfolio exceedingly difficult at this moment in time, because lenders are showing no sign in the immediate future of accomodating 85% BTLs. Watch this space, though, as this will possibly change when property prices start climbing again. It’s not all doom and gloom however. Even though now is not the best time to expand your portfolio, the plummeting base rate will help you manage the cost
