Mortgage options increasing for first-time landlords
Plenty of people are taking the plunge into buy-to-let and becoming first-time landlords, and the mortgage industry appears to be responding accordingly. The number of products available to these landlords has increased yearly yet again. However, first-time mortgages are actually becoming a smaller part of the buy-to-let market.
This data comes courtesy of Moneyfacts.co.uk, which found that there are 1,047 different first-time landlord products available as of April 11th. Last April there were 956 different products available, whereas in 2015 there were only 650 options for first-time landlords. This means the number of mortgages available has increased by an impressive 61 per cent over the last two years.
This means that landlords looking to buy to let are better served now than they have been in previous years. However, the data shows that this is potentially changing, as the market share of products for first-timers is actually decreasing as the overall number of buy-to-let products grows.
In total, there are now 1,530 buy-to-let products available for landlords. The 1,047 of these that are specifically for first-time landlords make up around 68 per cent of the total. This might seem like a lot, but in 2016 they made up 73 per cent of all buy-to-let products. Furthermore, even though there were only 650 options in 2015, first-time products made up 81 per cent of the market.
Charlotte Nelson, finance expert at Moneyfacts.co.uk, said that the drop in market share could be due to increased levels of uncertainty at the moment. Buying to let for the first time is being seen as more of a risk than it was previously, due to landlords' lack of renting experience.
There has also been an increase in regulation. Ms Nelson said: "The extra regulation means borrowers will face added checks and questions about their finances, so any would-be landlords will need to do their homework and prepare in advance to ensure they can pass with flying colours."
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www.rman.co.uk/features12-April-17General Lettings News