Matthew Wyles, senior policy adviser to the board at Castle Trust said lenders like Fleet Mortgages, with its new funding model, due to launch later this month is likely to shake things up a little.
“I think we’ll see the standard first-charge mortgage market, particularly in buy to let, hotting up. From our point of view, that’s good news as it’s more lenders to work with,” he said.
“Most of these lenders offer a standard stress test and we can come in and provide that extra equity on top to increase the leverage of the buy to let investor and his portfolio.
“The more lenders there are in the market, the more lending we’re going to do,” added Wyles.
Castle Trust launched its Flexible Zero Mortgage last week and will no longer offer its first-time buyer Partnership Mortgage.
The newly-launched product primarily targets buy-to-let investors and other high net worth clients and does not require monthly payments of the principal sum borrowed or interest.