Mortgage Introducer - Buy-to-let mortgage market – battered and bruised, how are brokers coping?
The buy-to-let market has undergone a turbulent few weeks, experiencing a host of product withdrawals, followed by the reintroduction of deals at significantly higher rates.
Aaron Strutt, product director at Trinity Financial told the industry magazine Mortgage Introducer:
“Paragon recently launched a selection of buy-to-let deals with 5% arrangement fees, which shows what many landlords potentially need to pay if they want a really competitive rental calculation.”
Strutt said that lending volumes in the buy-to-let sector had already taken a hit, but new purchase enquiries from landlords have dropped even further recently. As a result, Strutt believes that many buy-to-let investors with mortgages will be taking product transfers rather than remortgaging, because switching lenders is almost impossible at present.
“Buy-to-let Standard Variable Rates (SVR) are also shockingly high in many cases, so landlords cannot afford to revert to their lender’s SVR.”
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