Increase in buy to let mortgage lenders is good news for landlords
04 January 2012
Written by Jenny Barrett
There is set to be an increase in competition in the buy to let mortgage market this year, as more lenders are expected to enter the market.
This is good news for both amateur landlords with a small portfolio and professional landlords looking to expand.
In order to launch their products, many building societies and mortgage providers are offering good rates and terms to try and attract investors.The increase in buy to let lenders has been welcomed by industry experts, who say that the increased competition will benefit landlords.
Abbey for Intermediaries re-entered the buy to let market at the end of last year, after pulling out of the market back in 2008. Speaking at the launch of its products, Phil Cliff, Director of assets at Abbey for Intermediaries, said: “The buy to let market has seen strong growth throughout 2011 as demand for quality rented accommodation in the private sector continues to rise.”
Even though Abbey’s buy to let mortgage products are not thought to be market-leading, its long-awaited return to buy to let is good news for investors, as the market will benefit from having such a big lender operating in the space once again.
At the beginning of the year, established buy to let lender Coventry Intermediaries announced the launch of a new range of buy to let mortgage products under its Godiva brand, giving landlords yet more choice.
“We are starting the new year with some great news for borrowers,” said Colin Franklin, Managing Director at Godiva Mortgages.
This announcement follows that of existing buy to let lender Leeds Building Society, which also launched a new range of buy to let products at the end of last year.
