The number of Buy-To-Let mortgage approvals has grown significantly since its lowest point in Sept '09. According to Moneyfacts, the number of available BTL products is up 41% to 304 available schemes.  Two major lenders returning to the BTL market during the past two-weeks. 

Darren Cook, spokesman for Moneyfacts.co.uk, said: This is encouraging news for investors, especially those who were locked out of the market as the maximum available LTV fell. Competition has returned to the market, as lenders make cuts to their new borrowing rates.

Yet, Cook warned that the predicted changed to capital gain tax (CGT) could put the BTL sector's recovery at risk. He said: Government sources predict that CGT on non-business assets, including buy-to-let properties, could rise from 18% to a figure that could be as high as 40%. In a separate blow the annual exemption limit for CGT, currently £10,100, may come down to as low as £2,500. This will bring hundreds of thousands more people into the tax net.

What We Say ~ The figure of 304 current BTL products represents c.10% of the total number of schemes available in Aug '07, and we feel it is unlikely we shall ever see thousands of choices again. This said, higher loan to values are more common than before with 75%, even 80% LTV's for the squeaky clean applicant(s). In Sept '09, almost 1:3 BTL deals max'd out at 60% LTV. Today, 4:5 mortgage approvals are for 75%LTV or higher. In addition, lenders reappearing in the BTL market are dropping lending interest rates so landlord/investors should benefit from the competition between lenders making it cheaper to expand one's property portfolio.

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