The popularity of buy-to-let properties priced below £150,000 increased by 14% in the third quarter compared to a year earlier, while more landlords searched for higher loan-to-value mortgages.

Mortgage Advice Bureau (MAB) published research which revealed that seven in 10 buy-to-let investors looking for a mortgage in Q3 searched for a property valued below £250,000, with 35% of landlords looking for a property worth under £150,000.

Mortgage Solutions said that in comparison, the proportion of landlords interested in properties priced between £250,000 and £499,999 has almost halved over the past 12 months to total 24% from 44% in Q3 2014.

The results from findings they found which used data from over 250,000 monthly product searches via price comparison sites, showed that as mortgage rates continue to fall landlords are also looking at higher loan-to-value (LTV) mortgages.

The most popular LTV ratio searched for by landlords was between 70% and 79.99%, with two in five investors searching for mortgages with this term, up 10% on the same time a year earlier.

While higher LTV deals increased in popularity, searches for lower LTVs dropped with the proportion of landlords looking for LTVs below 60% falling from 27% to 22%.

Despite this shift in investor attitude, just a handful of landlords are looking for LTVs above 80%, with 15% looking for these mortgages, a 1% increase compared to a year earlier.

If you are looking to get a buy-to-let mortgage and wish to seek independent mortgage advice, we at Hutt Professional have financial advisers with many years of experience giving mortgage advice who would be happy to help. If you are located in Leamington Spa or surrounding areas please do not hesitate to contact us as we would more than happy to appoint you with the correct independent financial adviser for yourself.

 

Source: http://www.mortgagesolutions.co.uk/news/2015-11-24-buy-to-let-investors-seek-out-cheaper-properties-and-higher-ltvs/   27/11/2015