28th Sep, 2015
It has been reported this month that mortgage lenders have launched a number of new deals they say will widen the appeal of buy-to-let mortgages to potential landlords.
Previously NatWest’s buy-to-let mortgage target market was so-called non-professional landlords.
However, the bank has lifted those restrictions, meaning professional landlords – or those who earn more than 30% of their income from their properties – will also be able to apply.
The bank has also removed its maximum loan limit of £500,000.
It says the new criteria will only apply to new cases which are submitted from today onwards.
Paul Kane, acting head of sales at NatWest Intermediary Solutions, said: “Over the last 18 months we have made improvements to our buy-to-let offering, to grow our presence in this sector.
“Having enjoyed great success and increased our lending, we are now confident that we can significantly grow our buy-to-let business into areas of the market that previously we have not operated in.
“The introduction of our new criteria means that we can now welcome applications from ‘professional’ landlords, which is something that many brokers have been crying out for.
“The buy-to-let mortgage market has grown significantly over the last six years from accounting for 5% of all UK gross lending in 2009 to 15% in 2015.
“It is the fastest growing segment of the mortgage market in the UK. The changes we are introducing, combined with the recent rate cuts we made across our portfolio, mean we have a really strong proposition for mortgage intermediaries who are serious about this market.”
Elsewhere HSBC has revealed it is making buy-to-let mortgages available to non-HSBC customers for the first time, with the mortgage applications being assessed on a rental income basis only.
The bank will also offer new 60% and 70% LTV deals.
HSBC head of mortgages Tracie Pearce said the availability of buy-to-let products was now at its highest point since 2008.
She went on: “High rents and low interest rates mean customers are increasingly seeing buy-to-let as an attractive investment opportunity. The policy and pricing changes we have made will make our range available to even more people.”
Aldermore bank has also got in on the act, allowing borrowers to buy a new house for themselves, while retaining their existing home as a buy-to-let property.
In addition the bank has made changes to both its residential mortgage and standard buy-to-let mortgage range, including extending family gifted deposit to cover additional family members, foster parents or legal guardians.
Charles Haresnape, Aldermore’s group managing director for mortgages, said: “These changes provide greater flexibility for borrowers and are part of our commitment to continually improve our products and services for all mortgage customers.
“Extending our let-to-buy mortgage offering is a key milestone in Aldermore’s development. It allows home owners that wish to move, but who do not want to sell their house or are unable to, to purchase another property.”
Source : PropertyIndustryEye
Imagesource : Shutterstock
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