Speaking at the Mortgage Business Expo in Manchester, Paul Howard, director of intermediary sales for Portman BS, said that with the strong performance of the BTL market, he expected to see non-status products coming to market in the next 12 months, with the potential for rental calculations to be abandoned altogether in light of the advancing technology lenders can utilise to make customer checks.
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Howard pointed to the fact that rental calculations are constantly eroding and 100 per cent lending has become widespread within the marketplace.
He added: “As the market develops, lenders are looking to develop their product proposition. The interest rates on such products would be higher, because lenders would have to factor in greater risk, but they would take the view that the investor had done their research. The product might suit some customers who perhaps believe they can achieve a higher rental than a surveyor would indicate or see the property as an investment and are willing to top up any shortfall in the rent.”
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However, Howard stated that Portman’s subsidiary, The Mortgage Works, was not currently considering such a move.
Danny Churchill, director at Money Partners Touch, commented: “Some lenders are more forward thinking than others and will use some of their client’s income to top it up and wouldn’t dismiss the case because it didn’t fit. One of the features of the BTL market is product evolution.”
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