The Buy to Let market is evolving that’s for sure.  There’s still uncertainty on the effect the recently introduced taxation regulation and the proposed regulation changes will have on the Buy to Let market, lenders, landlords and the client demographic.

The relationship between the broker and the landlord is more important than ever as the brokers experience in the market place is key in not only facilitating the mortgage advice but also ensuring the landlord is up to date with the changing face of Buy to Let regulation.

Lenders have also had to adapt their proposition to keep up with the changes in terms of their Buy to Let risk appetite.  We have seen a considerable growth in this market place over the last 2 years and have reacted to the growth and opportunity in Buy to Let by amending our policy and process and led with competitive rates which have appealed to brokers and their clients.

Santander believe the BTL industry is working together, the year on year growth tells us we are. Lenders are diversifying and brokers have more option than ever before. There are more lenders in BTL than ever before. However there are many regulatory changes on the horizon with some unanswered questions:

  • Could Lending tighten?
  • Will the tax changes affect growth in the BTL market?
  • Consideration must be given to the BTL market becoming a specialist lending market
  • Do Lenders have a responsibility to contact customers about tax changes?

But, there are opportunities:

  • Brokers may need to Specialise in Advice e.g. Lending, Tax, Pensions
  • Are 3rd party relationships the way forward with business relationships formed with Accountants, Letting Agents, Wealth Management IFA’s, employing specialist BTL advisers in your business?
  • Is this an opportunity to move into a formal fee changing environment, charging a specialist advice fee, outside of processing cases that is ongoing and acts as a retainer with clients?

Do you have any clients who are looking at a new Buy to Let purchase or to remortgage an existing Buy to Let property and:

  • are aged 21-70
  • are owner occupiers
  • have a minimum basic employed income or a minimum taxable self-employed income of £25,000 p.a.?

If so, Santander could have a Buy to Let product to suit them.

Key Buy to Let highlights

  • BTL remortgage with capital raising (including debt consolidation) for personal use up to 75% LTV
  • 5% affordability rate for clients borrowing up to and including 60% LTV.  5.50% affordability rate for clients borrowing over 60% and up to 75% LTV
  • Our BTL calculator quickly lets you know how much your clients can borrow – helping you to check that your client’s BTL mortgage meets both our minimum rental coverage and that the property is self-financing
  • Free standard valuation for purchase and remortgage (up to a £2.5m property valuation)

 

Santander look forward to continuing to work with you as the Buy to Market evolves in the coming months.

Aimed at intermediaries and investment professionals only:  Not for public distribution