Accord Buy to Let has announced plans to expand into the consumer buy-to-let and first-time landlord markets over the next few months.
The Yorkshire Building Society Group’s intermediary-only lender has acknowledged the fact that for many people buy-to-let continues to look an attractive income investment at a time of low saving rates and stock market volatility.
Despite the introduction of higher stamp duty purchasing costs, the recent scrapping of the wear and tear allowance, and the pending removal of landlords’ mortgage interest tax relief from next year, investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments.
Buy-to-let returns continue to beat all other mainstream investments, including commercial property, UK government bonds and cash, while remaining a highly popular alternative to the volatility investors often risk when investing in the stock market.
Chris Maggs, Accord’s Buy to Let commercial manager, said: “We continually review how we can develop our mortgage proposition to best suit the needs of landlords. Despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.
“As part of our commitment to support landlords we plan to expand into the consumer buy-to-let and first-time landlord markets in the coming months.”
Earlier this month, Accord Buy to Let announced cuts to its fixed buy-to-let mortgage range, while also launching a range of new tracker mortgages designed to provide landlords with flexibility to exit their mortgage early without early repayment fees.
“There is a lot of uncertainty in the market due to the recent taxation changes impacting landlords and the tighter underwriting controls lenders are adopting to ensure landlords are not over committed and can support their property portfolio,” said Maggs.
“It is imperative that lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,” he added.
Each mortgage comes with the addition of incentives designed to help landlords keep costs low and will track the Bank of England’s existing rate for two-years.