Landlords still have ‘plenty’ of mortgage choice during crisis
Landlord mortgage availability has been hugely affected by the Coronavirus crisis, just like the rest of the mortgage market.
But, after an initial wave of large numbers of deals being pulled from the market, lenders are regrouping and relaunching buy-to-let products.
And very few lenders have stopped lending to landlords altogether.
Research from specialist buy-to-let mortgage adviser, Mortgage for Business, shows the vast majority of buy-to-let lenders – 85% – are still offering mortgages to landlrods.
It said that, out of 49 buy-to-let lenders, only seven have stopped lending to landlords – HSBC, Together, Foundation Home Loans, Vida Home Loans, Platform Home Loans, State Bank of India and Furness Building Society.
Lenders that temporarily stopped lending but have now returned include Clydesdale, Santander, Precise and Kent Reliance.
While most are still lending to landlords, many lending have tightened criteria to reduce their risk.
It means there are far fewer borrowing options overall, with the number of buy-to-let products dropping by almost 50% since the start of March 2020. Mortgages for Business added there are currently no lenders offering buy-to-let mortgages up to 85% of the property’s value, meaning landlords need at least 20% or 25% upfront.
Steve Olejnik, managing director of Mortgages for Business, said: “There is no need for landlords to panic. Yes, those looking to remortgage have fewer options. But they still have plenty.”
“My advice to landlords looking to remortgage is act sooner, rather than later. You may have to answer a few more questions when you’re applying for a remortgage that you would have had to last month – but a broker will still be able to find you a deal.”