Posts with tag: mortgage lender

Landbay Reports Record Buy-to-Let Lending in September

Published On: October 2, 2017 at 10:11 am

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Landbay Reports Record Buy-to-Let Lending in September

Landbay Reports Record Buy-to-Let Lending in September

Digital mortgage lender Landbay has reported a record month for buy-to-let lending in September, with a total of £6.31m lent across 31 mortgages during the month.

September’s lending levels were higher than the two previous months combined, due in part to both swelling inflows through the Innovative Finance ISA and mounting institutional investment on the peer-to-peer lending side, combined with a broadened range of intermediary partners on the borrower side.

As the Prudential Regulation Authority (PRA) introduces fresh regulation on the buy-to-let mortgage market, Landbay feels that it is in a strong position to capitalise on what is fast becoming an increasingly professional and specialised buy-to-let market.

The PRA’s new underwriting rules have caused a number of mainstream lenders to reconsider their commitment to the buy-to-let lending market in recent months, but this has played into the hand of specialist lenders like Landbay.

The momentum of lending in September is expected to continue into the fourth quarter (Q4) and beyond, as portfolio landlords and their brokers look to specialist lenders to support them through the more restrictive lending environment.

As Landbay approaches its fourth birthday, it has now lent a total of £59.56m to professional landlords across the UK, with zero defaults, arrears or late payments to date.

The CEO and Founder of the lender, John Goodall, says: “Over the past four years, we have invested a lot of time and money into building a platform that we can be proud of; one that provides a competitive source of funding for professional landlords, a credible opportunity for investors, and is able to scale quickly to meet growing demand for specialist buy-to-let lending.

“Like any fast rising new entrant, we’ve experienced some growing pains along the way, but our track record speaks for itself and we now have all the building blocks in place to support continued expansion of the company.”

Buy-to-Let will remain robust, says lender

Published On: August 30, 2016 at 9:13 am

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Another mortgage lender has put forward its plans to join the consumer buy-to-let and initial-landlord market during the coming months.

Accord Buy-to-Let, an intermediary-only lender of the Yorkshire Building Society Group, has acknowledged recent changes are making buy-to-let investment more attractive than ever. Record-low interest rates and volatility in the stock market are certainly contributing to the appeal.

Investments

Buy-to-let investment remains popular despite the increase in Stamp Duty, removal of wear and tear allowance and alterations to mortgage interest tax relief, scheduled for next year. This is due to the fact buy-to-let has performed better than other investment types during recent times.

These include mainstream investments such as commercial property, UK Government bonds and cash.

Chris Maggs, Buy-to-Let commercial manager at Accord, noted, ‘we continually review how we can develop our mortgage proposition to best suit the needs of landlords. Despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’[1]

‘As part of our commitment to support landlords we plan to expand into the consumer buy-to-let and first-time landlord markets in the coming months,’ he continued.[1]

Buy-to-Let will remain robust, says lender

Buy-to-Let will remain robust, says lender

Uncertainty

Just this month, Accord Buy-to-Let announced changes to its buy-to-let mortgage range. In addition, the lender launched a range of new tracker mortgages, giving landlords flexibility to exit their mortgage deal early without repayment fees.

Maggs observed, ‘there is a lot of uncertainty in the market due to the recent taxation changes impacting landlords and the tighter underwriting controls lenders are adapting to ensure landlords are not over committed and can support their property portfolio.’[1]

‘It is imperative that lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/buy-to-let-market-will-remain-robust-says-accord

New Range of Buy-to-Let Mortgages from Leeds Building Society

Published On: December 27, 2015 at 10:44 am

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New Range of Buy-to-Let Mortgages from Leeds Building Society

New Range of Buy-to-Let Mortgages from Leeds Building Society

Leeds Building Society has launched a new range of mortgages with cashback for existing buy-to-let borrowers.

Existing buy-to-let landlords hoping to add to their property portfolio or remortgage investments they already own can choose from an exclusive range of competitive products, each with £250 cashback.

They include: a two-year discount buy-to-let mortgage at 2.10%; a two-year fixed rate deal at 2.60%; and a five-year fixed rate product at 3.39%.

All of these deals are available at up to 60% loan-to-value (LTV) and come with a free valuation for properties worth up to £500,000 and fees-assisted legal services. They also have a low fee of £199.

Buy-to-let deals up to 70% LTV are also available through the lender.

Director of Business Development at Leeds Building Society, Martin Richardson, comments: “Adding the cashback benefit for existing buy-to-let borrowers complements some of the other changes we have made to criteria on this type of lending.

“We keep our lending criteria under active review and listen carefully to feedback from borrowers and intermediaries to find ways we can improve our service and develop products which better suit customer need.”1

The building society made changes to criteria on its buy-to-let mortgages earlier this year, including increasing the maximum number of properties an investor can hold to eight.

Currently, Leeds requires a minimum income of £25,000 for borrowers, but this has been altered slightly to allow joint income earners with less than £25,000 annual income to apply, so long as their joint income is over £40,000.

It requires rental income to cover at least 125% of interest payable on the buy-to-let variable rate.

1 http://www.propertyreporter.co.uk/finance/leeds-announces-btl-range-changes.html