Portfolio landlords haven’t been put off by regulation

Mortgage Introducer

January 9, 2018

One third (32%) of Accord Buy to Let’s applications have been from portfolio landlords since September.

That month the Prudential Regulation Authority unveiled rules forcing firms to scrutinise borrowers with four or more buy-to-lets by looking at all their existing mortgages.

Accord said this signals that landlords are remaining resilient despite the raft of regulatory changes affecting the market.

Chris Maggs, commercial manager at Accord, said: “We have seen a significant demand for buy-to-let mortgages from both experienced and first time landlords this year.

“2017 was a year of remortgaging for landlords who reaped the benefit of some exceptional mortgage rates, and 2018 is likely to be no different.

“Last year Accord, like many other lenders, adapted its mortgage offerings to meet the changing needs of the market. Equally, as new regulation was implemented landlords have begun to adapt to ensure their business withstands the changes.”

One fifth (18%) of the applications Accord received since April 2017 were from landlords classed as consumers: single property landlords where they or their relatives have previously lived.

Meanwhile 7% of Accord’s total applications were from first-time landlords, signalling that potential landlords haven’t all been put off from entering the market.

Maggs added: “This doesn’t negate the fact that things are still tough for landlords, and hopefully 2018 will give them some breathing space to take stock of the changes.

“However, landlords have demonstrated resilience when presented with challenges in the past, and I’m sure that will continue into 2018.”

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