A&L said buying residential property to rent out privately as an investment has become increasingly popular and the market is now maturing against the backdrop of more stable house prices. It added the market continues to grow strongly, and this is coupled with landlords becoming more sophisticated.
Mehrdad Yousefi, Head of Intermediary Mortgages at Alliance & Leicester said: “This news marks an exciting development for Alliance & Leicester Mortgages. While we continue to focus on residential lending we will look at appropriate ways to expand as the market changes. We think this is one area that makes more sense to us as the buy-to-let market is stabilising and developing into a mainstream sub-section of the housing market. Our plan is to offer buy-to-let through our intermediary channel and concentrating on lending to good quality applicants.
“This is fantastic news for mortgage brokers. Our research showed the impact of regulation has hit some brokers particularly hard on the pocket but the proposed extension of SIPPs in the Spring of next year, along with lenders such as ourselves diversifying into new markets, will provide welcome scope for brokers to grow their businesses.”
Mehrdad Yousefi continues: “This announcement further signals our focus and commitment to mortgage brokers. We want to get this right and we will be working closely with them in the coming months as we gear up to lend in the buy-to-let market.”
