How we're helping landlords with BTL mortgages.
At Principality Intermediaries, we know the challenges landlords currently face in the Buy to Let (BTL) sector.
In the last 12 months, investors have faced significant economic and political challenges. All of which have affected their potential return on investment (ROI).
Affordability is a key factor, due, in part, to the 14 consecutive Bank of England (BoE) interest rate rising to 5.25% as it looks to manage inflation. From 2022 onwards, mortgage rates have increased at a record pace (Statista, 2023).
The rising rate environment has led many UK Lenders to change their stress rates, with a number increasing the rental coverage required. This has made borrowing inaccessible to some landlords.
During this period Principality Intermediaries has continued to work closely with brokers to help them deliver for their buy to let clients, and following broker feedback, have made some significant changes to their criteria in the last year.
For borrowers, it’s expected that rates will start to decrease heading into 2024 (Source: Times Money Matters) as it’s thought that the peak of the BOE interest rate increases has passed.
Principality’s National Intermediary Manager, Helen Lewis (Wiltshire) summarises:
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‘The Holiday Let & Buy to Let mortgage market will remain challenging for brokers and their clients heading into 2024 onwards. There are challenges facing clients as they look to purchase these types of property. As rates remain higher from the BOE increases we expect the focus to be on remortgage business in 2024.
However, we remain cautiously optimistic as a lender and have enhanced our criteria to remove both owner occupier requirements and minimum income requirements to help make BTL & holiday lets more accessible for your potential clients’.
Webinar: How we're helping support your landlord clients (For Intermediaries only)
To register for our online event visit: https://events.teams.microsoft.com/event/a9722e9b-478a-49b3-b50e-c70f61e170a2@83c9b2db-2a15-4eed-8c33-618567b8e797
Find out more
For more information on how we can help your clients get in touch with your local BDM or visit https://www.principality.co.uk/intermediaries