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‘We have certainly not turned our back on the buy-to-let sector’ – Ying Tan

by: Ying Tan, founder and chief executive of Dynamo
  • 17/05/2019
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‘We have certainly not turned our back on the buy-to-let sector’ – Ying Tan
This month’s column is all about the three Rs – rebrand, re-emergence and remortgage.

 

I won’t dwell too much on our big news but – after rebranding as Dynamo to reflect our evolution as a fintech business and demonstrate our client-centric approach across all sectors of the mortgage market – let me just say that we, as a business, have certainly not turned our back on the buy-to-let sector.

Far from it. We are proud of our specialist heritage, especially within buy to let (BTL).

However, the modern mortgage market demands that we continue evolving to reflect our position in the market now, and in the future.

 

Re-emergence

From a lending perspective, we saw the re-emergence of Fleet Mortgages after a three-month hiatus.

The lender came back to the BTL sector after securing a long-term funding deal which should see Fleet complete over £1bn in new lending.

Fleet is offering new products across its three core areas – standard, limited company, and houses in multiple occupation (HMO)/multi-unit blocks (MUB), and has also introduced several enhancements, following feedback from its intermediary partners.

All of which represents great news.

 

Remortgage

The data from UK Finance for February revealed that 14,000 people opted to remortgage in the buy-to-let sector, 2.1 per cent more than the same period last year.

On the back of this increase, The Mortgage Lender announced it was setting its sights on the buy-to-let remortgage market with its first tailor-made product that combines competitive initial rates with free standard legal fees, no application, valuation or transfer fees.

The product range is available up to 80 per cent loan to value (LTV) and facilitates the addition of the completion fee, which ranges from 1.5 to 2 per cent of the loan.

Initial rates start at 3.44 per cent for a two-year fix at 70 per cent LTV and 3.70 per cent for a five-year fix at 70 per cent LTV.

The products cater for individual, HMO and MUB applicants and are available to the whole of market.

In other news, Saffron Building Society has launched a limited company buy-to-let mortgage for landlords who are looking to remortgage or purchase.

This is a 3.17 per cent fixed for two years with a maximum LTV of 74 per cent, a minimum loan of £30,000 and two per cent early repayment charges (ERCs) for two years.

In line with a widespread industry shift, Landbay has increased its maximum loan term from 25 to 30 years.

These new terms became available to investors, borrowers and intermediary partners from 1 May and let’s hope that May also signals the time for the BTL sector to really start heating up.

 

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