Barclays extends buy-to-let lending

Barclays has increased its maximum loan-to-value on buy-to-let mortgages to 75 per cent, up from 60 per cent, as it looks to increase its lending in the sector.

The lender has also launched a number of best-buy deals, including a five-year fixed-rate at 4.99 per cent and a lifetime tracker at 3.99 per cent – Bank of England base rate plus 3.49 percentage points. All of the deals come with a £1,999 application fee.

The move comes as activity in the buy-to-let market continues to grow on the back of big demand from would-be first-time buyers who are unable to raise a big enough deposit to get onto the property ladder.

This has seen a growth in the number of property investors returning to the buy-to-let market, with many landlords refinancing to fund the expansion of their portfolios.

To meet this demand, more banks and building societies are entering the buy-to-let mortgage market, with the likes of Yorkshire Building Society launching buy-to-let products this year.

Santander and Metro Bank are also both expected to launch buy-to-let offerings in the coming months.

“The demand from buy-to-let investors has picked up in recent months as many people in the UK opt to rent for longer,” said Andy Gray, head of mortgages for Barclays. “We’ve also seen increased appetite from investors looking to remortgage.”

Barclays will lend a maximum of £1m to property investors and it will restrict its lending to a maximum of four properties for new investors looking to borrow more than 60 per cent.