The mortgage industry has been in a state of flux since the onset of the COVID-19 pandemic. Many lenders have tightened their lending criteria, resulting in fewer borrowers being able to access the funds they need to purchase a home. However, there is some good news on the horizon as the government has recently announced that it will resume BTL lending at an 80% loan-to-value (LTV) ratio.
This decision will be welcomed by many potential buyers who have been unable to secure a mortgage due to the stricter lending criteria. It will also provide a much-needed boost to the property market, which has been struggling due to the pandemic.
The 80% LTV ratio means that borrowers can now access mortgages with a smaller deposit than before. This is great news for those who are unable to save up a large deposit but still want to purchase a property. It also means that lenders are more likely to approve mortgages for those who may have had difficulty in the past.
However, it is important to note that lenders may still impose other restrictions on borrowers. For example, they may require a higher credit score or proof of income. It is also important to remember that lenders may still impose higher interest rates on mortgages with an 80% LTV ratio.
Overall, the decision to resume BTL lending at an 80% LTV ratio is great news for potential buyers who have been struggling to secure a mortgage due to the stricter lending criteria. It will provide more people with access to the funds they need to purchase a property and should provide a much-needed boost to the property market. However, it is important to remember that lenders may still impose other restrictions and higher interest rates on mortgages with an 80% LTV ratio.