March 2018 marks the 2-year anniversary of the huge spike in Buy-to-Let purchases ahead of the Stamp Duty surcharge.
You’ll likely remember how busy it was this time two years ago. Bidding to avoid the 3% surcharge in Stamp Duty on BTL purchases, many of your landlord clients were rushing to secure finance to add to their portfolios.
March 2016 made history in mortgage activity in a number of ways, including:
- The highest number of loans taken out in a month for house purchases since 2014
- Gross BTL lending at its highest quarterly level by volume since the third quarter of 2007
- 176% increase in BTL purchases compared to February 2016
With up to 50% of all those mortgages reported to have been written on 2-year deals, March 2018 is anticipated to be a busy month for you, with so many likely to be looking to refinance.
However, with PRA changes to affordability calculations since then, now typically at 145%, plus portfolio landlord rules making refinancing or raising new capital a little more difficult, you may find some of your landlord clients struggling to secure finance.
Should your clients be unable to remortgage – especially if they’re hoping to raise new capital – don’t turn them away, as there’s likely to be a solution.
As a specialist finance distributor with access to a panel of specialist lenders – including many who are not subject to PRA regulation – we can cater for landlords and properties that the High Street may no longer accommodate.
With a simple referral process taking the weight off you, your clients can access:
- Rates from 3.39%
- Limited Company applications including off-shore SPVs
- Rental calculations from 125% at 4.19% pay rate
- Flats above all forms of commercial property
- HMOs on an unrestricted basis
- Portfolios above 5 properties underwritten on the individual property, not the portfolio
- Second charge BTLs so clients can take mortgage transfers, and still raise capital.
So, if your BTL client conversations resonate with challenges like these, don’t hesitate to call us – chances are, we can solve the problem. Drop us a line or give us a call today on 020 8731 5333.