Buy-To-Let Mortgages Riskier Than Before Crisis

Buy-to-let mortgages in Britain, especially those issued recently, are more risky than loan deals signed before the 2008 financial crisis, according to a Moody’s report. The ratings agency said one factor was that a new cohort of lenders, in their quest for market share, tend to issue loans with higher average loan-to-value ratios, laxer credit history constraints and longer maximum maturities than established lenders, degrading the quality of recent buy-to-let loans. Pre-crisis loans have also benefited from rising house prices in a way newer ones will not, it continued. Loan-to-value ratios have fallen more on legacy loans thanks to this than they have on newer ones. Read more on the Reuters website.

https://uk.reuters.com/article/uk-britain-mortgages-moody-s/uk-buy-to-let-mortgages-riskier-than-before-crisis-moodys-idUKKBN1HI294