Updates on Buy-To-Let Policies
Mary-Anne Bowring, managing director of the Ringley Group believes that there exists a huge opportunity for buy-to-let investors in the UK rental market. She predicts that it will grow in size and adds, "That's why institutional investors such as pension fund and insurers are investing billions in building homes for rent, as they see an opportunity to secure income-producing investments that hole up well during a downturn."
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As we forge through the latter half of 2020, a number of buy-to-let lenders have lowered the criteria for applications. This so hopefully increase the mortgages they provide.
A notable increase in the cap for maximum loans has been implemented by many banks and building societies. Reports also show that there is a lowering of the deposit rates to encourage and allow more landlords to qualify on the loan.
Since the lockdown and stay-at-home orders, specialist lenders like Zephyr Homeloans have reopened. Pepper Money has announced that their prime and adverse credit mortgage packages are once again available. Barclays and similar sized firms have noticeably lowered the asking price of their buy-to-let rates.
For residential products, Barclay has launched a 2-year fixed-rate at 1.70% and a 5-year fixed-rate at 1.75%.
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Another lender, Accord Mortgages has decidedly removed their maximum cap on property valuation. They have also increased the maximum loan amount back up to £1 million. To qualify, borrowers only need a deposit of 25%.
For Expats and Foreign Nationals, Skipton International currently offers property purchase mortgages and remortgages. Gatehouse Bank is available for England and in Wales and now offers lending up to £5 million for the former and £750,000 for the latter.
Another bank, Clydesdale Bank is also offering £1 million or more in mortgages again. They have reported providing a 20% deposit on buy-to-let mortgages.
Meanwhile, Paragon offers a more complex buy-to-let mortgage package. With their property values reportedly returning to work, they are in the position now to cater to intricate lending situations.
For homeowners planning to let their houses and purchase another property, BM Solutions (formerly Birmingham Midshires) currently offers a 25% deposit buy-to-let mortgage or let-to-buy product packages.
As of June 17, it was noted by many experts that June lettings activity are now matching 2019 levels. In some cases, a surge above the 2019 levels. Chief Operating Officer at Goodlord, Tom Mundy comments: ""It's been an incredibly busy few weeks for letting agents, landlords and tenants. They've risen admirably to the dual challenges of a surge in demand coupled with a totally new way of working and doing business. We are starting to see some much-needed stability and consistency in the market."
