Buy-to-let
the nullnancial nullrvices nullthoritynulls remit
should be enullended to regulate the
buy-to-let mortgage sector. null buy-to-
let is regulated, it is likely to lead to a
tightening of product availability and
an increase in the cost of mortgages,
which will have knock on impacts for
both residential property investors and
tenants.
This could not come at a worse period,
as the enullansion of the private rented
sector is being inhibited by a lack of
mortgage finance. nullith buy-to-let
lending levels subdued and mortgage
product availability limited, landlords also
enullressed concern about how they fund
property purchases, with nullnullstating
that they were worried about this.
nulle in 1nulllandlords is planning to
purchase property during null null1null but
the buy-to-let sector is marked by a lack
of competition, with just two lenders
accounting for an estimated 9null of
current new business, and product
availability falling by 9null since the
market peak in nullgust nullnull.
nulluncil of nullrtgage nullnders figures
show that the number and value of buy-
to-let gross advances hit their lowest
level since nullnull last year. There were
9nullnullnullbuy-to-let loans advanced in
nullnull, nullnulllower than nullnull. nully-to-let
gross lending was null.nullbillion, down
from nullnullnullbillion in nullnull.
The lack of competition makes it
difficult for landlords to secure the
finance they need to grow their property
business. null overwhelming majority of
landlords nullnullnullsaid that it was more
difficult to secure mortgage finance
during null than null.
nullithout a significant increase in
product availability and an easing in
lending criteria, we cannot see this
situation improving in the first half of
the year. The recovery of the buy-to-
let market is largely dependent on
the recovery of the wholesale funding
markets, and it was encouraging to
see a handful of successful residential
mortgage-backed securities deals
completed in the latter half of nullnull.
nulle now need to see momentum in
the number of new issues, and only then
can we truly say that we are emerging
from the credit crunch. n
null mortgage introducer march 2010
MI p29-30.indd 8 23/02/2010 11:03
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