A Bright Future for Buy to Let. NLA Mortgages Andrew Rudkin. Agenda. Introduction Is this a good time to be a Landlord? The BTL marketplace Looking forward Paragon Mortgages / Mortgage Trust NLA Mortgages Summary and Questions. Introduction. Provided by TBMC Group
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Owner-occupiers and social renters
UK private rented sector
1988 Housing Act
Source: DCLG/CB Richard Ellis/Savills
Mortgages for first time buyers still difficult with stringent underwriting criteria
Growing student population.
Growing immigrant population.
Personal choice...movement towards European market?
Average void period – 3 weeks
46% of ARLA agents reported more tenants than properties
Why is now a good time to be a Landlord?
The BTL marketplace
Impact of financial crisis
Total Market BTL Market % Share
Buy to Let Lending
Concentration on mainstream buy to let
There are now 30 plus lenders offering a wide range of products
Overall Buy to Let lending has proven to be very resilient during the crises with many lenders reporting lower arrears than residential mortgages
The Buy to Let Marketplace
More choice – fixed rates/discounts/trackers
Easing of rental requirements
Increase in available products
Over 2000 products available in 2007
Down to less than 80 in 2008
Over 400 products now available and expected to increase
HMOs – 3 years experience as a landlord
Multi Unit properties – max 20 units, 3 years experience
Limited company Lending
Under 6 month ownership remortgages
Portfolio lending up to £5m
Lending up to 75% LTV
Maximum loan £2m per property
No restriction to number of properties in a portfolio
All the above difficult to place elsewhere!
The Buy to Let Marketplace – looking forward