x
By using this website, you agree to our use of cookies to enhance your experience.
STAY CONNECTED!
    
newsletter-button

TODAY'S OTHER NEWS

Fewer lenders for portfolio landlords to choose from

Almost half of portfolio landlords who had submitted a mortgage application since the introduction of the new rules reported a reduction in the number of lenders available to choose from, according to fresh research.

Paragon’s PRS Trends research found that 46% of portfolio landlords found a change of lender choice, which contrasts with 33% of non-portfolio landlords.

PRA rules introduced at the end of September 2017 are having an adverse impact on the buy-to-let mortgage market according the research, based on interviews with 203 experienced landlords in Q1 2018.

Almost all landlords reported an increase in documentation requirements across the market, with 80% saying requirements had increased and 70% saying they had increased a lot.

Similarly, 80% of all landlords noticed an increase in lenders’ mortgage processing times. However, more than half - 54% - of landlords with larger portfolios said that processing times had increased by a lot compared with just 33% of smaller scale landlords.

Some 30% of BTL landlords said loan-to-value ratios on offer were also lower than before.

John Heron, managing director of Mortgages at Paragon, commented: “The more detailed underwriting required on larger portfolios makes it more difficult for mainstream mortgage lenders to compete successfully for the full spectrum of professional landlord business.

“As a result, we’re seeing a polarisation in the market, with specialist lenders playing to their strengths, adding product features that enhance value for larger scale landlords and increasing their share of more complex, portfolio business.”

icon

Please login to comment

Zero Deposit Zero Deposit Zero Deposit
sign up