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60pc of landlords to expand portfolios

Robyn Hall

May 16, 2014

Of the 251 property investors polled 34% favoured 5-year fixed rate products, making them the most attractive.

Nearly half said they were looking to remortgage within three to six months.

David Whittaker, managing director at Mortgages for Business, said: “With buy to let mortgage rates at historic lows, this strategy may well prove prudent in protecting them against future interest rate rises.

“Of those who are not looking to remortgage, we must surmise that some will be keen to hang onto their existing reversion rates for as long as possible.”

The vast majority of landlords polled (95%) are currently already borrowing on their portfolio.

Investors are more open to diversity, with three in 10 (29%) planning to purchase a home in multiple occupation, two in 10 (19%) planning to purchase a multi-unit freehold blocks, while 15% plan to purchase commercial or semi-commercial property.

Despite the majority of buy-to-let lenders stipulating that landlords require additional income of around £25,000 a year, 41% of respondents indicated earnings below.

Nearly half (47%) would like easier lending criteria, including removing non-property related income requirements and relaxing age restrictions.

David Whittaker explained: “The survey was sent out to our clients, many of whom are considered professional landlords by lenders because they typically have larger portfolios.

“Whilst this often means their choice of lender is narrowed, those lenders who do accept professional landlords usually do not impose a minimum income threshold and are happy to accept income from rent.”


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