BTL2021: Product transfers will become ‘very important’ in limited company BTL

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  • 22/04/2021
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BTL2021: Product transfers will become ‘very important’ in limited company BTL
Product transfers are becoming more important in buy-to-let and the focus on them is likely to grow as they expand in the limited company sector, lenders have said.

 

Speaking at the Buy to Let Online Forum, representatives from Paragon and Aldermore noted that lenders would be increasing the range of product transfer for limited company borrowers.

Paragon national sales manager Jason Wilde highlighted that with rising costs in the market a cheaper refinancing option would be welcomed by landlords.

Responding to an audience question Wilde said: “Product transfers will be very important, certainly, with the drive in limited company lending we’ve seen.

“Refinancing buy-to-let properties can be very expensive at best of times, however when you factor in legals, the costs can spiral out of control.

“Certainly, product transfers and further advances can become very important in this marketplace. With product switches most lenders are realising the importance of this and we do at Paragon,” he added.

This was echoed by Matt McCullough (pictured), national sales manager at Aldermore, when quizzed about the difference in rates between limited company and standard buy-to-let products at some lenders.

He said: “Product transfers are a coming thing – people are going to start doing limited company product transfers.

“You’ll find in the main a lot of lenders do tend to price the same there.”

And product transfers have been incredibly important to the wider buy-to-let market over the last year, as Phil Rickards, head of BM Solutions noted.

“We all know product transfers have been the lifeblood of our industry through tough times, and particularly at the start of the pandemic lots of product transfer business was being written,” he said.

“We had our biggest ever year on product transfers last year, so that’s a strong part of the market.”

 

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