Landlords still have a great choice of mortgages

Landlord mortgage availability has been hugely affected by the Coronavirus crisis, just like the rest of the mortgage market.

But, after an initial wave of large numbers of deals being pulled from the market, lenders are regrouping and relaunching buy-to-let products.

Very few lenders have stopped lending to landlords altogether.

Research from specialist buy-to-let mortgage adviser, Mortgage for Business, shows the vast majority of buy-to-let lenders – 85% – are still offering mortgages to landlord’s.

Females are dominating the buy-to-let market

New figures reveal women now account for 47% of the 2.5 million buy-to-let investors in the UK – which is an increase from 46% in the previous year.

When it comes to the actual number of residential property landlords who are women, the most recent data available – from the 2017/2018 tax year – revealed this figure had increased 5% to 1.2 million.

This thinning gender gap amongst buy-to-let investors is likely to be because women prefer lower risk investment options.

According to a study published in the European Journal of Finance by Dr Ylva Baeckström of Kings College women, generally, had a ‘less aggressive appetite’ for risk than men.

Desktop Valuations Launched

The Mortgage Lender has launched desktop valuations for buy-to-let (BTL) purchase and re-mortgage products up to 75% loan-to-value ratio (LTV).

From Monday 27th April, desktop valuations will be available for existing BTL pipeline cases where possible, and for the majority of new individual, expat and limited company applications.

For properties that are not suitable, including houses of multiple occupation and multi-unit blocks, applications can still be submitted by brokers and cases will be progressed once a physical valuation is possible.

The move follows the launch of a revised buy-to-let range, with 2-year fixed rates starting from 3.13% for individual and limited company applications at 70% LTV, and 5-year fixed rates starting from 3.49%.

But-to-let re-mortgages forge ahead

Re-mortgage instructions recovered to pre-lockdown levels last week, with an increase of nearly 40% compared to the previous seven days, according to recent data.

In the third week of May data recorded the highest volumes of re-mortgage instructions since the week commencing March 9 before lockdown measures were introduced.

Buy-to-let re-mortgage completions are 3.7% lower than the average for the same period last year.

Re-mortgage instructions have spiked since the reopening of the housing market last Wednesday (13 May) as borrowers take the opportunity to capitalise on the increased number of products available on the market and make financially savvy decisions to ensure they have the best products for them.

Restored market confidence and the consequential increase in instructions will continue as additional higher LTV products are brought back to the market and borrowers are able to alter loan amounts or change lender. The industry must continue to work together as demand will likely continue to increase in the coming weeks.