Buy to let investors hoping to get an 85% LTV mortgage are likely to be disappointed after it was revealed that lending institutions are going to set 75% LTV as the norm.
Many landlords expect to put down just 15% as a deposit, but the tough economic climate has caused lenders to demand more.
The CML recently said there was a 16% increase in the number of buy to let mortgage products during the third quarter of this year. At the same time, the value of advanced buy to let mortgages increased by 19%.
Meanwhile, contractor mortgage lending north of the border lags way behind the UK average, according to the Council of Mortgage Lenders.
Mortgage lending in Scotland increased by 8% in Q3, but that was 7.5% less than the comparable period in 2010. Furthermore, the national quarter-on-quarter average increase was 16%.
Scottish borrowers took out 12,400 home loans in the third quarter of 2011. Mortgage lending criteria was relaxed slightly over the period and the average first time buyers loan-to-value ratio increased marginally from 79% to 80% leading to a 10% increase in the value of mortgages granted to first timers. However, this was still below the UK average increase of 16% by value.
Kennedy Foster, from CML Scotland, explained that the Scottish mortgage market is stable. Continuing economic uncertainty and low consumer confidence will probably lead to a continuing constrained housing market throughout the whole of the UK in the coming months.
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