Posted on 26 May 2015 by
It’s taken a while, however the Buy to Let (BTL) market has finally come to the mortgage party. On the residential side we have been enjoying low rates for almost two years now, partly funded by cheap wholesale money and partly by the Government’s Funding for Lending scheme. This did have a drag affect on investment mortgages, and rates came down bit by bit; however I believe we are now we are seeing an all out price war as lenders complete for business.
And not just the usual, high street lenders either – we have seen some exciting new and returning entrants join the buy to let market in the last twelve months. These include; Post Office (via Bank of Ireland) and TSB on the high street; Fleet Mortgages and State Bank of India for existing and professional landlords; and Harrods Bank for higher net worth clients.
These returning lenders not only help to bring rates down, they also challenge criteria and open up new underwriting options. This is especially important, as it’s one thing trying to find the very best rate for a client who meets all the basic requirements; it’s something very different placing a case where there could be issues with the customer, property, income, etc on a BTL basis. Having more lenders looking at different ways of underwriting makes a real difference, and if done responsibly, changes the industry for the better.
There may well be changes afoot for BTL mortgages, which could include a form of regulation in the next five years. My message to you is if you are considering becoming a landlord, or extending your portfolio, or reviewing your existing finances, then the time to have a conversation with us is now.
We have access to the whole of the market, including existing and new lenders and myself or one of my expert colleagues will happily talk through your individual situation.
This article is for information only and does not constitute advice. Please obtain professional advice before taking out a mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage, or any debt secured on it.
All information is correct at the time of publication.
The blog postings on this site solely reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.