You are here: Home - News -

#BTLMF2013: Buy-to-let players welcome new lenders

by:
  • 02/05/2013
  • 0
#BTLMF2013: Buy-to-let players welcome new lenders
Leading figures in the buy-to-let mortgage industry have welcomed the prospect of new lenders entering the market in the near future.

As Mortgage Solutions reported earlier this week, a new buy-to-let lender is expected to launch within weeks, concentrating on adverse credit cases.

Speaking to an audience of brokers at Aston Villa FC, Paragon’s Moray Hulme said that some areas of the sector needed new players to encourage product innovation.

“New entrants will give competition and give the broker market more choice,” he said.

“What they have to do to get a foothold is make sure, whatever they do, that they do it properly. Whether they go up the risk curve or not will be up to them, but I’m not sure that you’re going to see much change there in the short term.”

“One of the areas of the market where there is not enough choice is the professional end, you need some more entrants that will give better choice to the professional and bring in more innovation.”

Tony Salentino, director at Complete FS, added that lenders were already showing a desire to expand their product offering, pointing to Kent Reliance as an emerging player in the market.

“We have seen in the past few years that Kent Reliance has been quite aggressive in the buy-to-let market.

“They have looked at niche areas such as HMOs, student lets and lending on a freehold but have also been quite aggressive with regard to the risk curve, I think they’re the only lender which goes to 85% LTV at the minute.”

Aldermore’s Rob Barnard later asked brokers to look beyond the dominant players and consider smaller lenders and building societies.

“On their own smaller lenders are not going to solve funding problems,” he told the audience.

“But put them all together and there is a really good proposition out there to help you when things don’t quite fit the BMs and the TMWs.”

There are 0 Comment(s)

You may also be interested in