“Many feel that, as a result of several mainstream lenders bowing out of lending to portfolio landlords and gradually putting less focus on the BTL market, the sector is becoming more specialist.
Buy-to-let lender One Savings Bank recently unveiled its lending requirements for portfolio landlords. Sales director Adrian Moloney says: ‘However you look at it, buy-to-let is becoming more specialised, a side-effect of the changes to stamp duty last year, a reduction in mortgage tax relief this year and the new PRA rules coming in from the last quarter of this year.
‘We have fewer, but more professional, landlords in both size and scale, and their needs are changing as well. Specialist lenders are stepping up to meet the more complex requirements as incorporation remains high, accounting for 44 per cent of loan applications in the first quarter.’
There is yet another change afoot for BTL investors to digest. From April 2019, landlords will have to pay any capital gains tax within 30 days of selling a property, whereas up until this date it is paid at the end of the current tax year.
However, Moloney says that given all the changes, there are great opportunities for mortgage brokers who can advise clients on the new tax implications and borrowing requirements and more choice in the market.
‘Compared to 2008/09, when 70 per cent of the market was done through two lenders, there is a lot more choice, and there is more advice and consideration that needs to be taken account of, and with that comes more opportunity. That opportunity for brokers is immense,’ he says.”
—Read Rebekah Commane’s full article here.