A recent survey we conducted found that 84% of intermediaries believed lenders needed to be more innovative to meet the varied needs of landlords. Furthermore, we found that 63% of the survey participants thought that landlords faced too many restrictions from lenders.
Innovation and flexibility are key to effectively servicing a diverse and growing sector of buy-to-let customers. And there is no doubt that this is a diverse market. From companies owning buy-to-let properties through to so-called accidental landlords, landlords have varying and specific needs.
Additionally, 29% of those surveyed said that lenders appeared reluctant to lend to landlords and 53% said lenders did not do enough to support the needs of the changing buy-to-let market.
In response we have revamped our entire range of buy-to-let mortgages, launching new standard and specialist products which offer simple through to complex cases for all types of brokers and landlords
A key part of our buy-to-let revamp is bringing our residential and commercial buy-to-let ranges under one proposition. As a result, residential mortgage brokers and landlords will now have access to a wider variety of products, from the standard range for individuals with single residential units, through to the specialist range for limited companies, houses in multiple occupation (HMOs) and multi-freeholds.
We’ve created a new buy-to-let hub for intermediaries, which will host information and expert commentary on the buy-to-let market. The hub will be a key source of information for brokers. It can be found here: www.aldermore.co.uk/btlhub
We also cater for companies owning buy-to-let properties, which is a feature that may be more attractive to some borrowers post the recent Budget changes.
Although it is early days, our belief is that any impact from the lowering of tax relief on buy-to-let mortgage interest will be marginal and that property remains a very attractive investment opportunity. Potential investors taking a long term view will continue to compare returns on various investment classes and property has historically performed extremely well.
Corporate landlords, basic rate taxpayers and those with no mortgage will not be impacted by the changes. We don't believe that tax relief is a primary driver of the economics. Furthermore, the proportion of landlords who are impacted will have time to take action.
By Charles Haresnape, Group Managing Director, Mortgages, Aldermore
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