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Lenders have adapted well but expect shifts regarding tenants on benefits – Ying Tan

by: Ying Tan, managing director of Buy to Let Club
  • 07/12/2018
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Lenders have adapted well but expect shifts regarding tenants on benefits – Ying Tan
The festive season is almost upon us and as such it’s a good time to look back at how the market has fared over the last 12 months.


While it’s not been the easiest of years for the buy-to-let market, it’s certainly been less eventful than the previous few.

The focus on policing landlords more has continued with new regulations proposed and more changes set to come into play in 2019.

The government has not reversed any of the sweeping changes it introduced in previous years, but perhaps we need to be thankful at least that it hasn’t introduced any new ones.

Lenders have adapted well to the new landscape.

There are certainly areas in which we will see change next year, however, particularly surrounding tenancies.

I predict we’ll also see a shift in the way lenders, and landlords, view tenants in receipt of benefits, given the furore surrounding Universal Credit. Time will tell.


Early Christmas presents

While we may be in the final stages of 2018 and lenders are no doubt looking ahead and planning their strategies for the new year, there are still a number which are making changes to their ranges before the year is out.

As an early Christmas present for brokers and landlords, Precise launched a range of limited edition buy-to-let products with flat fees and cashback options including a two-year fixed rate at 3.29% with 1% cashback and a product fee of £995.

Pepper Money announced it has simplified its criteria across all of its product tiers for borrowers with adverse credit.

The simplified product tiers, which range from Pepper 6 to Pepper 48, make it easier for brokers to quickly recognise the criteria that apply to their client’s circumstances.


Foundation’s three-year deals

Foundation Home Loans revealed it was launching a new range of three-year buy-to-let products for individuals and limited companies, covering standard properties, HMOs and multi-unit blocks.

Barclays had some good news when it announced some rate reductions.

Its 2.64% five-year fixed (BTL) with a £1,795 product fee, 75% loan to value (LTV), will reduce to 2.47%.

And, finally, Vida has increased the maximum buy-to-let loan that qualifies for the reduced 1% limited edition fee from £125,000 to £150,000.

The standard buy-to-let fee for loans less than £250,000 is £1,995.




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