You are here: Home - News -

Record low level of first-time landlord deals

by:
  • 05/07/2016
  • 0
Record low level of first-time landlord deals
There has been a noticeable fall in the proportion of buy-to-let mortgages available to first-time landlords over the last five years, despite the overall number of buy-to-let deals increasing, research reveals.

Findings published by Moneyfacts showed that compared to five years ago when there were 434 buy-to-let products on the market available to first-time landlords, accounting for 83% of all buy-to-let loans, there are 813 for aspiring landlords today. But Moneyfacts said that this now only accounts for 75% of all available deals, allowing first-time landlords access to a record low proportion of the buy-to-let mortgage market.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, said first-time landlords have been missing out on the boost in product numbers to the market.

“As first-time landlords don’t have a proven track record in managing rental properties, offering them a buy-to-let mortgage poses a greater risk to the lender, and it’s this risk that is making the number of first-time landlord deals remain relatively static,” she said.

“The additional regulation in the buy-to-let market and the added economic uncertainty following the Brexit vote means even more lenders may reconsider whether first-time landlords are a ‘safe bet’. As a result, would-be landlords are likely to face more probing questions about their finances than their more experienced counterparts.”

There are 0 Comment(s)

You may also be interested in

  • Congratulations to all those Lenders who have made the 2019 shortlist for the L&G Mortgage Club Awards… https://t.co/iyQJHI2aBT
  • Vote now in our poll: Are you working harder than ever to demonstrate your client value? - Mortgage Solutions… https://t.co/mWIWInGgpu
  • Congratulations to our finalists for Business Leader: Intermediary Lender (less than £5bn gross lending p.a) -… https://t.co/A6frxEHeiy

Read previous post:
gavel
Three ex-Barclays staff found guilty of LIBOR rigging

Three ex-employees of Barclays have been convicted of conspiracy to defraud in connection with the manipulation of US Dollar LIBOR,...

Close