{"id":9500,"date":"2018-01-10T16:45:31","date_gmt":"2018-01-10T16:45:31","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=9500"},"modified":"2018-01-10T16:45:31","modified_gmt":"2018-01-10T16:45:31","slug":"portfolio-landlords-are-rising-above-tough-regulatory-changes","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-hk\/2018\/01\/10\/portfolio-landlords-are-rising-above-tough-regulatory-changes\/","title":{"rendered":"Portfolio landlords are rising above tough regulatory changes"},"content":{"rendered":"

Despite the latest raft of extra rules around buy-to-let lending for portfolio landlords, it seems that demand is still strong for these specialist mortgages.<\/strong><\/p>\n

The latest data from UK mortgage company Accord has revealed that 32% of all its buy-to-let mortgage<\/a> applications came from landlords who own four or more properties – the required criteria to be considered a portfolio landlord<\/a> – since September last year.<\/p>\n

It was in September that the Prudential Regulation Authority (PRA) brought in rules for stricter underwriting processes<\/a> by lenders for portfolio landlords, tightening affordability levels and reducing the availability of mortgages for some prospective borrowers. The new regulations mean that a portfolio landlord’s entire lending portfolio is now assessed during the application process.<\/p>\n

The results seen by Accord prove that, rather than being deterred, the sector is maintaining resilience and adapting to the changing market<\/a>.<\/p>\n

Chris Maggs, commercial manager at Accord, said: “We have seen a significant demand for buy-to-let mortgages from both experienced and first-time landlords this year. 2017 was a year of remortgaging<\/a> for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.”<\/p>\n

Standing their ground<\/h4>\n

He added: “Last year Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented landlords have begun to adapt<\/a> to ensure their business withstands the changes.”<\/p>\n

Consumer landlords – also known as accidental landlords<\/a>, or those who rent out a property where they or relatives have lived – accounted for 18% of Accord’s business since April last year, an indication that many homeowners are choosing to hold onto their homes<\/a> and rent them out, rather than sell.<\/p>\n

Jaedon Green of the Leeds Building Society believes that a stricter lending process will mean that questions are asked sooner rather than later in the application process, meaning less follow-up queries and a smoother process.<\/p>\n

He added: “Contrary to the doom-mongers\u2019 predictions, underwriting approvals have risen, suggesting lenders\u2019 pragmatic response to the regulatory changes has led to better-quality submissions,\u00a0helping us to meet the needs of our portfolio landlords and support the next phase of\u00a0evolution in the buy-to-let market.”<\/p>\n","protected":false},"excerpt":{"rendered":"

Despite the latest raft of extra rules around buy-to-let lending for portfolio landlords, it seems that demand is still strong for these specialist mortgages. The latest data from UK mortgage company Accord has revealed that 32% of all its buy-to-let mortgage applications came from landlords who own four or more properties – the required criteria… Read more »<\/a><\/p>\n","protected":false},"author":4198,"featured_media":9515,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,26,6],"tags":[15,90,341,265],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/9500"}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/users\/4198"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/comments?post=9500"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/posts\/9500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media\/9515"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/media?parent=9500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/categories?post=9500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-hk\/wp-json\/wp\/v2\/tags?post=9500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}