BTL Market Update - Easter - 01.04.2010

Author: David Whittaker Posted on: 01 April 2010

Nothing radical is happening in the run up to Easter - and I know it's April Fool's Day so there won't be anything silly today - lenders are fine tuning pricing downwards albeit by very small amounts but at least it is happening.

The main players are still BM solutions and The Mortgage Works but Coventry (inc Godiva) and Woolwich have been more active these past weeks and there has been some odd ball activity by the Saffron Walden at 80% (but RTI cover made it virtually unworkable). The TMW products on HMO and Ltd Co still remain a little untested but at least they are there and will improve over time.

Although previously noted, the launch of Aldermore Residential with some Buy to Let capacity post Easter will add some new flavour to the sector and hopefully will be at 70% or higher to ease the pressure on BM Solutions.

Much specialist capacity for professional landlords and complex Buy to Let buildings is still being provided by Aldermore's commercial mortgage team who would welcome other entrants into the market. Principal focus for this would be Paragon but they are obviosuly working on something as their sales teams are out checking distribution routes.

The pending General Election is just another excuse for market drift as the prospect of a "hung" Parliament continues to worry money markets and Tony Ward's UK Mortgage Conference on 24 March identified the key issue of the lenders needs to repay the SLS and SGS funds of some £312Bn starting in late 2011 ending in 2012 - currently no mechanism exists and this is a big precipice looming for the banks that had access to these funds in late 2008 and early 2009. So we are not out of the woods yet !!! 

Author: David Whittaker