Simon Bayley is commercial director at Foundation Home Loans
New lenders have been the backbone of the buy-to-let market resurgence over the past three years. Landlords and their advisers have had greater choice as a result, with increasingly keen rates and criteria.
However, there have been significant changes in the sector over the past 12 months with the double whammy of changes to tax and stamp duty, resulting in the post April market started to contract and the pending PRA CP11/16 which is likely to become policy in short order.
The most recent bump in the road is now manifestly obvious in the shape of the recent Brexit vote. There has certainly been some direct impact, with some lenders pulling products, increasing rates and reducing maximum LTV’s. Some have insinuated that securitisation funded lenders are especially vulnerable.
We have always maintained close relationships with our funding partners and post the Brexit vote we continue to have strong backing for our strategy and product offering, allowing us to confidently offer our existing products and enhanced service proposition to the market. While some lenders may have had to recalibrate their products at the behest of their funders, the wholesale funding and securitisation market remain open.
As we have a significant servicing arm that maintains a portfolio of securitised assets of c. £2.5bn, we are in a great place to maintain a strong new business proposition with full service capabilities. Foundation Home Loans has built its strategy around offering strong and robust products that last the course. It is at times like these where our strength shines through as a lender than can offer brokers a consistent product offering.
We are emphatically open for business.