However, Paragon’s latest PRS Trends research for Q1 2018 has revealed that 67% of non-portfolio landlords said that there had been no change in lender choice.
The study found that the PRA rules introduced at the end of September 2017 had had a significant impact on the buy-to-let mortgage market.
Eight out of 10 of all landlords (80%) said documentation requirements and lenders’ mortgage processing times had increased.
- LendInvest improves BTL rates
- Make the most of HMO regulation changes
- 41% of portfolio landlords confident about expanding
More than half of landlords with larger portfolios (54%) said that processing times had increased by a lot, while just one-third of smaller-scale landlords shared that view (33%).
Three out of 10 landlords (30%) also said that LTV ratios on offer were lower than before.
John Heron, managing director of mortgages at Paragon (pictured above), said: “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.”
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