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Positive messages emerge in highly competitive buy-to-let market – Ying Tan

by: Ying Tan, founder and chief executive of Dynamo
  • 03/06/2019
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Positive messages emerge in highly competitive buy-to-let market – Ying Tan
We have seen some highly positive news emerge from the buy-to-let sector in recent weeks.


Foundation Home Loans completed its third securitisation under the Twin Bridges platform. The specialist lender outlined that the securitisation had taken place within a challenging wholesale funding market.

It is said to be the first UK residential mortgage-backed securitisation (RMBS) buy-to-let trade this year and only the fifth mortgage securitisation of any type.

Paragon has reported a 16 per cent increase in mortgage lending over the first half of the year.

It rose to £834m in H1 2019 up from £721m in the same period last year. Buy-to-let business was suggested to have dominated new mortgage lending, up by 17 per cent to £788m.

A focus on professional landlords with larger portfolios was cited as one of the major reasons for this growth.

This is indicative of heightened demand from portfolio landlords across the sector and is reflected within many lending propositions.


Criteria changes

Coventry for Intermediaries has introduced a new product range targeted at portfolio landlords.

The number of buy-to-let (BTL) mortgages allowed with the Coventry Building Society Group has increased from three to five, with the aggregate loan limit rising to £2m for all rental properties mortgaged with the group.

A series of criteria changes have been implemented by Fleet Mortgages.

It has lowered minimum income to £15,000 and the minimum lending age to 21.

There have been a range of increases across the board with maximum age rising to 95 at the end of the term, lending extended to 80 per cent loan to value (LTV) and portfolio lending hiked to £5m.


Five-year fix focus

Focusing on product-related news, one BTL mortgage term has risen to prominence this month—the five-year fixed.

Landbay has launched two five-year fixes, one for standard properties and one for small houses in multiple occupation (HMOs).

Skipton Intermediaries released two buy-to-let products for purchase and remortgage: A five-year fixed rate at 2.09 per cent up to 60 per cent LTV and a five-year fix at 2.49 per cent up to 75 per cent LTV, both with £995 fees.

Platform has reduced selected rates in its BTL product range by up to 0.10 per cent, including a five-year fix which is now available from 2.09 per cent.


Highly competitive sector

I could double the length of this month’s article with upbeat news around offerings, product cuts and criteria enhancements from mainstream lenders, specialist lenders and building societies.

All of which reflects well on a highly competitive BTL sector across the board.



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