UK PRS Landlords Looking For Better Buy To Let Mortgage Finance

Friday, November 14, 2014

20% of UK PRS Landlords Struggle To Obtain Buy To Let Mortgage Finance

20% of UK PRS Landlords Struggle To Obtain Buy To Let Mortgage Finance

20% of UK PRS Landlords Struggling To
Obtain Buy To Let Mortgage Finance

31% of UK private rental sector (PRS) landlords reckon that they will require additional buy to let mortgage lending or buy to let re-mortgages within the next three months. However, as many as 20% of landlords may not get financed, according to fresh data published by the National Landlords Association, (NLA).

According to the NLA’s latest landlord survey, 67% of UK PRS landlords rely on a buy to let mortgage to fund their rental property portfolios, but the findings show that 20%, (equivalent to 1 in 5, or approximately 300,000 private rented sector landlords) have not been able to expand their rental property assets due to increased difficulties in obtaining buy to let mortgage finance over the last 12 months.This has been blamed on the introduction of financial stress testing of an applicant’s financial affairs under the same strict criteria as the Mortgage Market Review.

59% of UK PRS landlords think that buy to let mortgage lenders fail to consider an individual landlord’s circumstances, whilst 56% of landlords reckon that current buy to let mortgage lending criteria has become extremely conservative.

Carolyn Uphill, Chairman, NLA said: “A significant number of landlords are having trouble accessing finance and expanding, which is a major concern because the private sector is vital in meeting the ever increasing demand on housing at the moment. Many landlords are frustrated as lending criteria is too prescriptive. There’s no one-size-fits-all mortgage. We understand that landlords need access to a range of products that meet their specific individual circumstances.

Many PRS landlords think that they should be able to have access to a wide range of buy to let mortgage products in order to find the most appropriate financial solution for their needs.

Many mortgage providers require landlords to produce detailed information on all their forms of income, this can cause delays and can be a literal minefield, if the landlord’s income does not fit exactly with the lenders model criteria they will refuse to lend, which wastes time and slows the process for other borrowers.

It has been a long held notion that buy to let mortgage lenders would eventually begin to consider each potential landlord borrower on their own individual financial acumen, rather than imposing a blanket ban on lending to individuals who earn less than £25,000 (GBP) per annum, regardless of circumstances.

Finance 4 Landlords spokesman Sim Sekhon said “We believe that all landlords should have access to buy to let mortgage lending and Finance 4 Landlords can help any landlord who is having difficulty in finding a buy to let mortgage, and they should visit Finance4 Landlords.com so that we can help”.

Buy to Let Mortgages Are Not Difficult To Get

This was written by Mike Clarke. Posted on at 11:25 am. Filed under Buy To Let. Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink. Follow comments here with the RSS feed. Both comments and trackbacks are currently closed.