In many locations where property prices have been static, landlords have been able to capital raise to expand their stock to secure some good value flats and houses.
However, a key factor for landlords remortgaging or purchasing continues to be the upfront costs, which is why we have launched a range of products without any upfront fees at all. Still exceptionally competitive for rate, these ‘fee-assist’ deals change the game for brokers looking to help facilitate more activity for their property investor clients.
Brokers can now arrange single or multiple remortgages and purchases without having to account for an arrangement fee or valuation fee, which makes these deals particularly attractive for large properties (up to £750k) or multiple property portfolios. HMOs up to 6 occupants are also eligible. Unlike many other lenders’ buy to let products, Foundation rates are equally accessible to landlords buying as individuals or limited companies, even if only recently incorporated.
These three new fee-assisted, buy to let products are now available across both our Tier 1 and Tier 2 product ranges. Tier 1 caters for those borrowers with a near-perfect credit record while our Tier 2 range caters for those borrowers with recent blips on their credit record or looking to find a more specialist property type.
The rates are fixed for 5 years, helping with long term budgeting and revenue predictability security for the forthcoming years.
Whilst confidence indicators for the UK private rental sector seem relatively low, there is still plenty of business to reach for specifically in mortgage types which benefit from advice, such as in the portfolio market, limited companies, credit blips and HMOs.
63% of landlords told us that they plan to buy their next BTL through a ltd company, up from 55% three months ago. Landlords letting HMOs see the highest rental yield of all property types at a national average of 6.5%.
If you want to do more for your landlord clients, or if you are expanding your advice to cover limited company lets and borrowers with near-perfect credit scores or credit blips, we would love to help you gain confidence in this developing market. Why not speak to your BDM today?