New mortgage affordability rules for homebuyers may see a shift of focus from lenders towards more deals for buy to let landlords.
The affordability rules restrict how much borrowers can apply for and make purchasing a home even harder for many.
To compensate for the potential loss of business, many industry experts expect lenders to free up more funds for buy to let.
One broker has already claimed that with 644 different mortgage deals available to landlords, the market is already way ahead of the number of mortgages offered at the peak of the housing bubble in 2007.
However, that huge number of deals is mainly due to clever marketing and offering slight changes to similar mortgage packages.
New buy to let mortgages from the Coventry for brokers illustrates the point.
The lender is offering
- 3.25% fixed until June 2019 at 65% loan-to-value (LTV) due until June 2019
- 2.29% variable at 65% LTV with a £199 booking fee, £800 arrangement fee and no early repayment charges
- 2.65% variable at 80% LTV with a £199 booking fee, £800 arrangement fee and no early repayment charges
Keystone Buy to Let Mortgages has cut fixed rates.
Five year fixes start from 5.04%, while a three year discounted tracker start from 4.59%.
Blemain Finance has changed some buy to let lending criteria.
A key change is scrapping the six-month minimum ownership period for mortgaging, which will help refurbishing landlords refinance quickly.
The firm also offers second-charge buy to let loans.
Sales Director Gary Bailey said: “As the buy to let boom continues there has been a real surge in demand for lenders to continue to provide innovative products – we’ve responded with a number of product changes to what was already a wide ranging buy to let product offering.”