Buy To Let Mortgages
Brokers could see ‘substantial reduction’ in business as landlords leave – Star Letter 31/03/2023
Each week Mortgage Solutions and its sister title, Specialist Lending Solutions, pick the top comments from our readers.
This week’s comment comes in response to: BTL 2023: Landlords with properties in personal name ‘face significant incentives to sell up’
Paul Barrett said: “Unfortunately for mortgage brokers they will be seeing a substantial reduction in their business as landlords evacuate the long-term lettings sector. That doesn’t necessarily mean mortgage brokers will see a decline in overall landlord business.
“This will be as a result of landlords seeking other mortgage types as a consequence of such landlords moving to other tenure types from long-term lettings. Although we now have the government threatening the viability of those other tenure types.”
He continued: “This could well result in landlords selling up. This could of course affect potential mortgage business. Those landlords still seeking mortgages will be attempting to achieve far lower loan to value (LTV) which will mean less profitable business for mortgage brokers.
Barrett added: “The direction of travel in the residential rental mortgage market is definitely a reducing one. There will be considerable consolidation amongst mortgage brokers as there will be a substantial reduction in business to fight over.
Episode 4: New Build: Powered by Partnership podcast from Newcastle for Intermediaries
Sponsored by Newcastle for Intermediaries
“Many brokers will give up. The private rented sector become an even more onerous place to do business in. There is absolutely nothing to look forwards to.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.