With a host of lenders having entered the BTL market in 2006, Christopher May, director at The Mortgage Times Group, admitted lenders would have to come up with new solutions to help borrowers in the market.
He said: “I think that we will soon see 100 per cent BTL deals, because there is such competition in the market from the different lenders.”
However, Chris Pearson, head of sales and marketing at BM Solutions, admitted 100 per cent BTL deals were not likely in the near future. He said: “Lenders will provide greater loan-to-value (LTV) offerings, with the self-cert and non-conforming BTL markets growing. Lenders must innovate in this field.”
Peter Williams, executive director at the Intermediary Mortgage Lenders Association (IMLA), believed the BTL market was still finding its feet. He said: “LTVs will undoubtedly edge higher. However I think the market will go through some change after it has been through a ‘full cycle’.”
May added that technology would be the main market driver over the coming months. “It will be a lot harder to use lenders in the future who are behind with their technology. Some are very advanced but technology is a double-edged sword because some borrowers will want to get the case straight through, while others will want time to think about their decision.”
Williams added: “Streamlining the process between lenders and brokers will be essential over the next year. More efficiency is needed.”
