Over the last few months a number of buy-to-let only lenders have announced moves into residential lending.
The size of buy-to-letwill shrink by £7bn by 2028, Phil Riches, head of sales at Mortgages for Business has predicted.
In 2016, the Council of Mortgage Lenders recorded £40bn of gross buy-to-let mortgage lending and Mortgages for Business is expecting a figure of around £38bn this year.
However this figure will drop £33bn in 2018. Of that Mortgages for Business Riches predicted that £6bn of lending would go to limited companies. That's almost double the £3.5bn anticipated in 2017.
He attributed the shrinkage to the Prudential Regulation Authority’s requirement for tougher stress tests on landlords, plus reductions in tax relief and a 3% stamp duty surcharge on second homes.
Over the last few months a number of buy-to-let only lenders have announced moves into residential lending.
Riches was talking at MBE Leeds which is taking place today at the Royal Armouries.
