BTL loan to value ratios likely to remain low in 2011

"I think it’s important to manage landlords’ expectations and certainly as far as BM Solutions is concerned, we have no plans in the short term (ie. 2011) to change criteria, particularly with regards to loan to values.  That’s not to say that they will not change in the future but I can easily see 2011 remaining level in line with our present criteria."
 
The company – who have a 40 percent share and 18 years experience in the UK buy to let lending market – stated their total lending figure for 2010 to be close to £10 billion – compared to £47 billion prior to the onset of the credit crunch.   Emphasising the need for property investors and landlords to take a more long term view, Mr Rikards stated: "main risk is that the recovery is not going to be quick. Lenders and borrowers, need to maintain awareness that recovery is going to be a long and drawn out process.  As for BMS’s target market, there is a solid bank of mortgage intermediaries who have come through the financial crisis and remain in the sector for the long term offering professional mortgage advice to new and existing landlords."
 
When asked about the FSA’s new Mortgage Market Review, Mr Rikards commented: "we’ll have to wait and see what the new rules are before making any predictions on the impact. However, it seems that the aim is to instil a more meticulous case analysis procedure and ensure that borrowers have the capacity to be able to handle their commitments.  Borrowers should have nothing to worry about as long as the income they provide is correct and can be substantiated.  We’re committed to ensuring any changes balance the long term health of the industry."

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