This is thought to stem from buy-to-let being firmly established in the prime sector, alongside a greater choice of buy-to-let products tailored to meet the changing borrower profile.
Many brokers are now beginning to realise the value of buy-to-let borrowers in providing regular income through mortgage and re-mortgage of buy-to-let property portfolios. Council of Mortgage Lender (CML) figures show that outstanding buy-to-let mortgages stood at nearly £95 billion by 2006, up from under £10 billion in 2000.
“There is a huge market out there and savvy brokers are tapping into it,” said Keith Dearling, managing director at Advantage. “The buy-to-let borrower profile has changed dramatically and the market itself is now far removed from its original non-conforming niche image. Portfolios of five or six properties are not uncommon now. Brokers know that borrowers will return at the point of re-mortgage if they are impressed by product and customer service from the outset. It is up to lenders to provide the innovation and flexibility they need to meet borrower demand.”
Advantage recently launched a buy-to-let product range allowing 100% standard rental calculation as well as a £5 million portfolio limit (maximum 10 properties) and loan of up to £500,000. The range offers up to 90% LTV (85% for first-time buyers).
