NatWest is also introducing an 85% LTV two year tracker purchase and remortgage product with an initial rate of 4.69% with a £999 fee

And it is launching a 18 month tracker purchase and remortgage product with an initial rate of 3.29%, up to 75% LTV, with a £999 fee.

However, it is also increasing the rates on two buy-to-let deals in its core range.

The two year fixed rate, 75% LTV, purchase and remortgage product will increase by 0.3% to 4.69%.

Meanwhile the two year tracker at 75% LTV for purchase and remortgage product will also increase by 0.3% to 4.19%.

Mark Bullard, head of sales, NatWest Intermediary Solutions, says: “The prevailing market conditions means that we are having to move swiftly to actively manage our product ranges so that we preserve our service standards.

“Against this backdrop I am pleased that we are able to refresh our corporate range with higher LTV mortgages.”

According to data from Mortgage Flow, specialist broker Mortgages for Business’s buy-to-let mortgage sourcing tool, the six now offering 80% LTV or above are Kent Reliance Banking Services, Saffron Building Society, Leeds Building Society, Aldermore Mortgages and as of today, Clydesdale Bank.

From December 2008 to May 2010, the highest possible LTV for a buy-to-let mortgage was 75%. The first sign that the tide was about to turn came from The Mortgage Works on May 9, 2010, when it introduced a limited range of products to 80% LTV.

Investors then had to wait another nine months for another lender to do the same. On that occasion the entrant was Kensington which introduced a solitary product to a headline hitting 85% LTV. Kensington has since withdrawn from buy-to-let lending.

David Whittaker, managing director at Mortgages for Business, said the fact that there are now six lenders offering 80% buy-to-let products demonstrates growing confidence among lenders in the sector.

He said: “Between them, there is a good range of products on offer from two-year discounted trackers to five-year fixed rates. Some even come with flat arrangement fees which really start to make sense for investors looking to borrow larger sums.”

*There are now a total of 486 buy-to-let mortgage deals available, a 26% increase on the 386 available last February, and exactly double what there were in February two years ago, according to Moneyfacts.

The average interest rate for buy-to-let borrowers is currently 4.79%, down from 5% from February last year and 5.31% in February 2010 when there were 243 deals available.

Louise Holmes, spokeswoman for Moneyfacts, said: “These latest figures, particularly a reduction in the average rate, should make pleasing and encouraging reading for landlords and property investors.

“The increase in demand for rental properties has resulted in a degree of competition returning to the buy-to-let sector, giving it a well-needed boost.”

Last week the lender launched its B2L 75% deals through its direct channel, but from tomorrow it will re-introduce its products via brokers as well.

It is offering a two-year fixed rate up to 75% LTV at 5.29% and a two-year tracker up to 75% LTV at base +3.99%.

It says it has listened to feedback around the fees and the products available through its direct and broker channel and will now provide a tiered fee approach:

For deals between £50,000 and £125,000 the fee will be £1,999
Between £125,000 and £250,000 the fee will be £2,999
Over £250,000 the existing £3,999 fee will remain
At the same time it is introducing a 10-year fixed rate at 70% LTV with a rate of 4.99% and cutting its three-year fixed rate at 90% LTV to 5.99%.

Andy Gray, head of mortgages for Barclays says: “Today’s mortgage changes are about boosting the availability of buy-to-let and providing competitive longer term deals in the residential mortgage market with the launch of a 10 year deal to support borrowers who are worried about the long term base rate outlook.”

The lender is also adjusting some of its other price points to manage demand across its product mixes. It says this is set against a backdrop of a series of economic indices surrounding the continued global and Eurozone uncertainty which have influenced funding across the market.

The two-year fixed rate at 70% LTV which includes its Great Escape mortgage is increasing by 0.25% from 3.49% to 3.74% and all its tracker and offset mortgages will increase by up to 0.21%.

“We look forward to working with 3mc to ensure this package is a great success.”

Doug Hall, director of 3mc, adds: “As the vanilla buy-to-let market continues to grow and develop so does the specialist buy-to-let market.”

The product is designed for buy-to-let investors and combines a standard bridge from Precise with a remortgage exit from Aldermore.

It will be processed by 3mc using the same valuer for both lenders.

Chris White, chief executive of Hinckley & Rugby, says: “Thanks to these rate cuts our discount mortgages are even more appealing. We expect them to be very popular.

“Given they are lifetime discounts, these are very competitive mortgages.”

The society has reduced its lifetime discount deal at 75% LTV from 3.39% to 3.29%, a discount of 2.35% from its SVR.

At 80% LTV the product now has a rate of 3.39%, down from 3.49%, while at 85% LTV it has a rate if 3.79%, down from 3.89%.

There are fears that regulation could restrict mortgage availability and force landlords who are unable to remortgage to sell up, with falling house prices and fewer properties to rent among the results.

According to new analysis by the Building Societies Association, EU intervention could prove disastrous.

Some 1.4m landlords with buy-to-let loans are set to be affected by the proposed changes, and some might find they no longer qualify for a remortgage in as little as two years’ time.

The new EU legislation, being brought in to deter ‘irresponsible lending’, is due to be voted on early in the new year and to come into effect in 2013.

At its heart, the EU draft Directive on Credit Agreements Relating to Residential Property says says buy-to-let mortgages should be regulated in the same way as residential mortgages.

This would prevent lenders from taking anticipated rental income into account when deciding the amount of the loan.

The EU proposals, which would bring Britain into line with Continental practice, would force lender to assess buy-to-let borrowers in the same way as mortgage applications by owner occupiers – ie, on earnings and the size of their deposit.

Currently, rental income is treated as unearned income, so would not count in calculations. 

Paul Broadhead, head of mortgage policy at BSA, said: “If rental income is excluded from consideration when underwriting BTL, then the availability of new borrowing could cease fairly rapidly. In addition, those with existing buy-to-let loans may well be unable to refinance.

“Over time this could lead to a reduction in private rented sector properties. At the extreme, current BTL borrowers may be forced to sell their property portfolios, which would have obvious implications for existing tenants and the housing market as a whole.”

Landlord bodies, such as the Residential Landlords Association, have consistently criticised EU attempts to regulate the buy-to-let mortgage sector, saying that it is inappropriate, given that landlords are essentially business people, making business decisions.

Regulation of buy-to-let loans would bring the sector under the remit of the FSA and its successor, thus giving buy-to-let borrowers consumer-style protection in the event, for example, of mis-selling.

The FSA appears to be ready to welcome this.

At the recent CML conference, Sheila Nicoll, director of conduct policy at the FSA, told delegates that it is for the Government to decide whether buy-to-let should be regulated. But she added: “We certainly see benefit in having the buy-to-let market regulated alongside the residential mortgage market.”

September’s average price represents a 0.3% fall when compared to September 2010, and the three-month on three-month measure of house prices was unchanged in September.

Robert Gardner, chief economist at Nationwide, says: “UK house prices continued to tread water in September, rising by 0.1% during the month. Prices were also essentially flat over the year, just 0.3% lower than September 2010.

Aldermore Bank is offering 100% loans to value – provided the borrower can persuade a parent, grandparent or other relative to guarantee the loan. But there are tough conditions that not all guarantors will like. Aldermore will take a 10-year charge, for 25% of the amount borrowed by the first-time buyer, on the guarantor’s property.

Northern Rock’s two-year Everyday fixed rate products with a £995 product fee now start from 2.67% for both purchase and remortgages up to 70% LTV, a reduction of 0.32%.

Its two-year Everyday fixed rates with no product fees, start from  3.19% at 70% LTV.

Northern Rock has also reduced selected mortgage rates across its products at 80% LTV, 85% LTV and 90% LTV.

A 90% LTV two-year Everyday fixed rate mortgage  for purchase customers, is now available from 5.25% with a £995 product fee.

Customers will also qualify for £500 cashback. Or for those who choose its Fee Saver Option, the same term is available at 5.45%.

It says following demand from BTL customers the lender has also extended its £500 cashback incentive on selected residential products, to include all BTL products with a percentage fee.

Selected fixed rates in the Intermediary Exclusive range of mortgage products have also been reduced by up to 0.30%.

 The rate cuts include a 3-year fixed rate at 80% loan to value, cut from 4.68% to 4.13%.

A reductioncof 0.20% will be made to their 2-year fixed at 80% LTV, and a cut will also be made to the 5-year fixed rate mortgages at 80% and 85% LTV by up to 0.50%.

Other cuts include a 0.20% decrease on their 2-year fixed rate at 75% LTV, now 2.99%.

On tracker mortgages Barclays is making a cut for borrowers at 75% LTV over two years, with a new rate of 1.97% above base rate