Insurance News Archive
Buy-to-let becomes more accessible
As confidence in the housing market as a whole improves, the buy-to-let sector has become more accessible, according to independent financial information provider Moneyfacts.
Research shows that residential and buy-to-let mortgage providers have begun to reduce rental income cover rates over the past month.
As a result, prospective buy-to-let borrowers are finding lending criteria easier to meet and the market more approachable.
This is being welcomed by those looking to get onto the first rung of the property ladder or invest in a second home.
However, Lisa Taylor, a financial expert at Moneyfacts, comments that with increasing flexibility in the market lenders are also stretching their criteria and customers should not always go for the maximum they are offered.
"They should strongly consider the impact it will have on their disposable income and ultimately on their lifestyle," she said.
Figures show that the average for the buy-to-let mortgage market is now around 125 per cent of interest cover.
06 Jun 2006