Landlords With Portfolios Tough Measures On BTL Mortgages
An intermediary mortgage company claims that landlords with portfolios in spite of all the new regulations are still ploughing ahead with increasing their housing stock. Since September 32% of buy to let mortgage applications have been from landlords with four plus properties.
The Prudential Regulation Authority (PRA)’s is now forcing companies to be far more stringent when ‘interrogating’ buy to let mortgage applications from landlords with portfolios, and includes analysing applicants existing mortgage history. Despite this further tightening of restrictions on lending, it seems to have undeterred many landlords with portfolios.
The company also reveals that 20% of other applications were received from landlords who are classed as ‘consumers’. The definition of a ‘consumer’ landlord is someone who has just one rental property that they or relatives had previously lived in.
First time landlords’ applications accounted for 7% and it is encouraging to see that in spite of all the new tax and regulation changes, new investors are positive in their outlook when entering into the market.
Chris Maggs, the commercial manager of the company, said: “We have seen a significant demand for buy to let mortgages from both experienced and first time landlords this year. 2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different. Last year we, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented landlords have begun to adapt to ensure their business withstands the changes.”
Maggs added: “This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes. However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”