New 80% LTV Mortgage On Its Way
Roll up Roll up!
Get ready for 1st July when a major lender is releasing the first 80% buy to let mortgage. They are busy recruiting to cater for the enormous demand that will occur once released.
So this will mean:
Only 20% BMV needed to get a low money in deal
Only 25% BMV needed to a no money down deal
Only 30% BMV to get a cashback deal!
This 5% extra LTV is a massive benefit. For those with mathematical brains the more you tend to 100% the benefits are even greater. So for example if you get 100% LTV the returns you can make are infinity.
So each 1% we tend towards 100% the benefit is a lot greater than the previous 1%.
So what do you think will happen when this 80% product is launched. One of two things will happen:
1. they will get ramraided with business, fall flat on their face and pull the product within days.
2. it will be a huge success and the envy of other lenders who will follow suit.
Now I reckon number 2 will happen but I have to admit I have no idea in this climate we live in!
All I say is hurry up and release it before 1st July.
I reckon we could see an 85% buy to let by October 2009. then I have to say it will be happy days and the term PROPERTY MILLIONAIRE will start appearing in all the property press adverts again!
Article Courtesy of Ajay Ahuja www.ahuja.co.uk
