Recent figures from the Mortgage Advice Bureau showed that competition among lenders and lowering mortgage rates were making conditions highly favourable for landlords, as the buy to let sector continues to boom. A new survey from the NLA, though, argues that many landlords are unable to expand due to difficulties in accessing finance.
Three in 10 landlords said they will look for additional buy to let lending or to re-mortgage in the next three months, yet many may not gain access to finance, according to new findings* from the National Landlords Association (NLA).
Over two thirds (67 per cent) of landlords rely on a buy to let mortgage to fund their portfolio, but the NLA findings show that one in five – or approximately 300,000 – landlords have struggled to access finance.
Furthermore, six in 10 landlords (59pc) say that lenders fail to consider their individual circumstances, or that current buy to let lending criteria is too conservative (56pc).
There are two ways a landlord can obtain a buy-to-let mortgage, either by going direct to a lender or by using the services of a broker, and the NLA believes it is vital that landlords have access to a wide range of products in order to find the one most appropriate solution for them.
Carolyn Uphill, Chairman, NLA said: “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.
“Many landlords are frustrated as lending criteria is too prescriptive. There’s no one-size-fits-all mortgage, and as the leading landlord association in the UK we understand that landlords need access to a range of products that meet their specific individual circumstances.
“NLA Mortgages provides a free on-line buy to let mortgage search facility which sources from over 600 mortgage products to help landlords find the best product to suit their needs. Mortgage schemes that are not available in the general marketplace are also available through NLA Mortgages – all via the NLA website.
Source: The Movechannel