You are here: Home - News -

Non-portfolio BTL mortgages fall following PRA changes

  • 30/10/2017
  • 0
The latest rule changes have had an unwelcome impact on mortgage products, according to Moneyfacts, which has seen the number available to smaller landlords fall noticeably.

The beginning of this month marked another significant change in the buy-to-let mortgage market, with lenders are now required to apply stricter underwriting criteria to portfolio landlords.

Since introducing the portfolio lending rules Moneyfacts said it had seen the buy-to-let mortgage market shift away from landlords with three or fewer properties, with a 13% drop in the number of products available to this group since.

Moneyfacts also noted that since 1 October the average two-year fixed rate had increased by 0.05% and was on target to get back to the rate seen in September, before the latest set of regulatory changes came into effect.

So far 18 individual providers have upped their rates since the start of September. However, this mirrors rising rates seen across much of the mortgage market, as rumours of a Bank of England Base Rate hike intensify.


Process costs

Charlotte Nelson, finance expert at Moneyfacts, said: “This portfolio change may have had a more practical effect on rates as well, with lenders not just being a little more cautious; some lenders may have had to change their process behind the scenes to accommodate the new rules, and this extra cost may be impacting these providers’ pricing activity.

“With all the changes and now the rising buy-to-let rates, it is going to be more difficult for individual landlords to make a profit that is worth their efforts. Landlords will have to weigh up the costs to figure out what their best possible option may now be.”

Nelson added that it had been a turbulent time for the buy-to-let market. “While a 0.05% increase appears insignificant, it marks a turnaround in the buy-to-let sector, so landlords are now faced with not only more hoops to jump through but higher rates as well.”

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.


Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.


Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.


Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
  • RT @robjupp: Great day yesterday for donations to @MortSleepOut. With Gift Aid, we are now close to £17,000. It would be great to get to £2…

Read previous post:
FSCS signpost
Mortgage broker compensation limits to hit £85k but providers will contribute

Mortgage brokers could be on the hook for larger compensation claims under proposed changes to how the Financial Services Compensation...