Is Bank of China in the market for Buy to Let Lending ? - 27.07.2009

Author: David Whittaker Posted on: 27 July 2009

Market rumours have put the Bank of China's name forward for lending both to homeowners and Buy to Let landlords for several weeks. As the world's 3rd largest bank their movement into the UK mortgage market is a very welcome step as their "quoted" products would set the market alight across both business areas.

In essence they propose to lend to Buy to Let borrowers (perhaps also Ltd Co) on an a fixed margin (3.5%) over BBR with loans up to 65% LTV. Terms relating to fees, tenant type and Rent to Interest cover appear to open up some funding possibilities that have been missing since the withdrawal of Paragon, CHL mortgages from the market.

They are working with a small panel of brokers to control distribution but are still finalising details of the administrative procedures to ensure a steady build-up of transactions. It has been reported that all borrowers will be interviewed at one of their 5 offices in London, Birmingham, Manchester and Glasgow; clarity on this and other aspects of the process will be available shortly.

When we have a full product specification and how the products will benefit landlords we will issue a product alert; however we will be pleased to answer any direct queries that you have at this stage - subject to final confirmation from Bank of China in due course. Either speak to your normal consultant or call us on 0845 3456788.

Author: David Whittaker