
First-Time Landlords Are Leading The Charge And Bespoke Lenders Are Right Behind Them
We mustn’t let all the negativity seen in the wider press cloud our judgement. We’re prone to alarmism but in reality, our BTL situation is more nuanced.
We’re led to believe in the current market that there is little hope, and all our landlords are set to abandon the market as the Renters’ Rights Bill comes into play. This may be true only to an extent. There has certainly been an uptick in sales from landlords, but whether the momentum will continue is another question.
What Landlord Intentions Really Mean for Broker Conversations
A recent survey of landlords revealed nearly half (47%) have no intention of selling any of their properties over the next 12 months. Moreover, looking at the longer-term picture, the latest Landlord Trends report showed 37% of respondents said they planned to shrink their portfolios over the next five years. A sizeable proportion, yet not the majority.
Where Brokers Come In: New Landlords Are Filling the Gaps
At Market Financial Solutions, we prefer to focus on who these landlords will be selling to. As some existing landlords become jaded by the market, there are plenty of motivated newbies who are keen to get involved.
Multiple lenders across the BTL spectrum have reported a huge rise in first-time landlord applicants. And why wouldn’t these first-time landlords try their luck? The latest Housing Insight Report from Propertymark revealed tenant demand is still outpacing supply. There was an average of 10 applicants for each available property in February. Also, rents continue to rise, and rental yields are climbing across England and Wales.
Supporting First-Time Investors Through the Noise
Still, we must acknowledge the challenges new entrants are facing. The current market isn’t one that’s ideal for rookie investors. Arguably, they’re entering a rental scene that’s more complicated than anything their forebearers faced. Costs are high, legislation is tightening, and there’s widespread pessimism across the economy.
How Brokers Can Use Specialist Lenders to Support Clients
Given all this, these first-time landlords will need all the support they can get. The specialist market, with its bespoke options and flexibility, is primed to offer as much help as possible.
At Market Financial Solutions, our specialist BTL mortgages have been designed from the ground up to be just as tailored and useful as our bridging loans. For starters, we are more than happy to hear from first-time landlords, who could be as young as 21. We will never dismiss an application without giving it a fair hearing and every single one of our BTL mortgages is underwritten from day one.
What’s more, we have a range of tools at our disposal to help deliver the right funding for our borrowers. To boost affordability, we can utilise deferred repayment options, rolled up interest, top-slicing, and more. Also, we’re able to accommodate unique investment set ups, such as LLPs, share purchase agreements, trusts, and more.
We always look for reasons to lend at Market Financial Solutions. That’s the case for seasoned pros, and first-time buyers alike.
About Market Financial Solutions
Market Financial Solutions was founded in 2006 to provide flexible bridging finance to property investors. Our products are available to private individuals and commercial borrowers, and every deal is underwritten from day one.
Launching bespoke BTL mortgages in 2022, Market Financial Solutions brought bridging-like speed and flexibility to the rental market, and it continues to innovate and serve property investors of all backgrounds.
Fiducia Commercial Network is a commercial finance ‘Appointed Representative’ network created to allow independent firms to provide commercial property finance and trading business finance options to their existing client base and network.
Joining the network provides opportunities for professional brokers to offer a full range of commercial finance solutions by acting as an Appointed Representative (AR) with the full support of the Fiducia Commercial Network team.
The Fiducia Commercial Network membership includes FCA authorisation and reporting, PI insurance, and NACFB membership, plus business, compliance, finance, system, and admin support from a company with over 20 years’ experience in commercial finance.
If you’d like to discuss joining Fiducia Commercial Network or you’d like to apply to become an Appointed Representative…
To discuss Fiducia Commercial Network or to apply to become an Appointed Representative email the team via by clicking this link.
For all media and marketing enquiries contact – pr@fiduciagroup.co.uk
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