Salter, head of corporate accounts at Nationwide and buy-to-let sister brand The Mortgage Works, said the new rules had forced more people to stay in rented accommodation, rather than purchasing.
“MMR has meant would-be buyers have been pushed to stay in rented accommodation when they can’t get a mortgage which has increased demand,” he told the Mortgage Business Expo in London.
“The FPC guidelines on loan-to-income have resulted in less people passing affordability tests, again these are people being pushed towards rented accommodation.”
Salter said that around one-in-five buy-to-let loans were currently held by lenders with closed books, stating this could present a valuable opportunity for brokers as rates rise and remortgaging looks more attractive.
“A likely rate increase has pushed landlords towards fixed rates, so again a remortgaging opportunity,” he added.
