Several lenders, including GMAC - RFC, which is one of the UK’s leaders in buy to let is advancing 89% on buy to let loans. This is the highest loan to value mortgage available on the market.
Lee Grandin, Managing Director, Landlord Mortgages comments the following: “I think this is an important and exciting product that shows lenders have total faith in the future of the buy to let market. This is giving investors a renewed confidence in investing in property.”
“Scare mongering comments regarding the GMAC – RFC product are totally unfounded. It is essentially self-regulating in that the rate payable is 6.25%, which is higher than usual, which means that a very high yield of 7.8% is required to meet rental cover requirements. This product is therefore only likely to be popular with landlords enjoying a high, sustainable yield.”
“I believe that products such as this should be encouraged as they support the buy to let investor, yet remain very much within the parameters of responsible lending.”
