With almost a third of landlords surveyed by the National Landlords Association (NLA) admitting they will be looking for additional buy-to-let (BTL) funding over the next three months, the association’s findings that one in five have not been able to expand their portfolio over the last year due to difficulties accessing BTL finance will raise concerns for many.
Over two thirds of landlords also told the NLA that they rely on a buy-to-let mortgage to fund their portfolio.
A further 59% said that lenders fail to consider their individual circumstances, and that current buy-to-let lending criteria is too conservative.
“A significant number of landlords are having trouble accessing finance and expanding, which is a major concern because the private sector is vital in meeting the ever increasing demand on housing at the moment,” said Carolyn Uphill, NLA Chairman.
Interestingly, the NLA’s research also asked landlords what they would say to lenders if given the opportunity:
Landlord A
“Mortgage lenders are becoming increasingly difficult to work with. The requirement to produce further information on income is causing delays and becoming problematic…if your income does not fit their box on criteria they say no, which wastes time and slows the process.”
Landlord B
“Mortgage lenders should consider each borrower on their own merits, and not impose a blanket ban on lending to individuals earning less than £25,000, regardless of their personal circumstances. Someone who is lucky enough to have no outgoings, servicing a mortgage with personal income of £25,000 a year is more than adequate.”
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