Good news from British banks for buy-to-let loan seekers

Posted under News by Michael

Buy-to-let loan seekers who have been hearing negative news for last so many months can rejoice as several British banks are coming forward with offers of more easily available mortgages and other loans.

Northern Rock Bank has reversed its earlier decision and has allocated 14 billion ponds for mortgages and other loans during year 2009 and 2010. Following this announcement, the Bank of Scotland also has come forward with offer of total 1.7 billion pounds to mortgage seekers. The only condition, according to media, is that RBS mortgages and buy-to-let loans will be available only to its Scotland based clients. RBS intends to offer loans to first-time homebuyers up to 90% of property’s value and would also provide funds to buy-to-let businesses.

RBS chief executive, Paul Geddes, declared that RBS would be “more than ever, open for business.”

However, financial experts suggest that banks should focus more on helping those who had been struggling to get funds for last several months, particularly those prospective homeowners and buy-to-let investors who have steady income but very insignificant savings in banks.

Industry experts believe that if banks make funds more readily available to residential rental sector, Britain’s struggling housing market will get an early chance to revive once again.