Roll up Roll up!

 

Get ready for 1^st 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 1^st 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!

 

Ajay

Posted on: 30th Apr 2009