Specialist lenders provide the heartbeat of the buy-to-let sector according to Ying Tan, chief executive of online mortgage broker Dynamo.
Over the past few weeks, product overhauls, enhancements and extensions into new markets have reinvigorated the market.
In particular, he highlights the extension of LendInvest’s BTL offering into the Scottish market, and Vida Homeloans’ overhaul of their product range and rate reductions for first-time landlords, loans over £1m, houses in multiple occupation (HMOs) and Multi-Unit Blocks. Plus the removal of their cap of 100 properties per portfolio, and the reduction in income and employment verification for self-funding buy-to-let landlords.
Specialist lender Paragon is expecting the increase in portfolio and complex buy-to-let business seen over the past two years, to continue in 2020. Moray Hulme, director of mortgage sales at Paragon, said: “Whilst mainstream lenders have limited their involvement to smaller-scale landlords, Paragon and other specialist lenders have been able to adapt and offer the right products to enable landlords to remain efficient – and this is a trend that we expect to continue in the long-term”.
Paragon has discounted rates for two and five years available from 2.65% at 75% loan to value (LTV) for individuals, limited companies and limited liability partnerships. HMO landlords with 75% LTV can secure a two-year discounted variable rate mortgage at 2.80%. Meanwhile, non-portfolio landlords can access two discounted products at 75% LTV; a two-year discounted variable rate mortgage at 2.65% and a five-year discounted variable rate mortgage at 2.95%. Available with a free valuation and no application fee.
A raft of new products
Aldermore and Foundation Home Loans have also introduced significant changes. Aldermore launched a five-year fixed remortgage product for individual, and company landlords with single residential investment properties, available at 75% LTV at 3.68% and Foundation Home Loans has reduced rates across its entire range of two-year fixed rates at 75% LTV.
Given the myriad of changes in recent weeks, it seems that the specialist lenders are gearing up for a busy new year to meet the ever-changing needs of landlords looking for flexible and competitive mortgage products.