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Support for aspiring landlords as applications double


In 2017, the buy-to-let market saw the number of products available to first-time landlords drop significantly and aspiring landlords, seen as a higher risk due to their inexperience, were finding it difficult to secure a lender. However, despite regulatory changes and the introduction of stricter lending criteria the buy-to-let market has retained its attraction to investors as a long-term investment. Mortgage lender Accord has seen applications from aspiring landlords double since they began lending to first-time landlords in July last year.

When it comes to acquiring a mortgage, first-time landlords face similar challenges to existing landlords. The biggest challenge, however, is for those that want to convert their existing mortgage to a buy-to-let and secure a second mortgage for a new residential property. The let-to-buy process (letting out the property currently lived in, in order to purchase a new residential property) can be considerably more complex than that for a standard residential or buy-to-let mortgage.

New mortgages for let-to-buy first-time landlords

To assist borrowers that want to let their existing property and purchase a new residential home, Accord Buy-To-Let has recently expanded its buy-to-let product range with two new mortgages.

Available to borrowers with at least 25% equity in their property, they can choose between 2.89% fixed rate for two years or 3.19% fixed for five years. Both products come with a £195 product fee and a free standard valuation, plus the helping hand of £1000 cashback.

Chris Maggs, Accord Buy to Let’s commercial manager, said: “We’re aware that the first venture into buy-to-let for many landlords is to buy a new home and rent out their former residential property. That’s why we’re now offering mortgages on a let to buy basis for first-time landlords and have launched two new bespoke products for aspiring landlords”.

Accord is not the only lender offering support for the let-to-buy first-time landlord market. The Mortgage Works (TMW) a subsidiary of Nationwide Building Society offers borrowers the opportunity to remortgage their current residential property as a buy-to-let with TMW and apply for their onwards residential mortgage with Nationwide if applying through an intermediary. Skipton, Coventry and Principality Building Societies, Virgin Money and the Post Office are all currently listed in the top 5 best mortgage rates for first-time landlords.

Aspiring landlords, like all mortgage borrowers, are advised to do their research before proceeding with any application and consider engaging an experienced mortgage broker to smooth the process.

The post Support for aspiring landlords as applications double appeared first on BuyAssociation.

Source: BuyAssociation

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