Could your landlord client do more now without the upfront costs?
Nationally, an equal proportion of landlords bought and sold property this summer. Rental profitability remains constant in Autumn of 2019; 84% of landlords report that they are still making a profit (Foundation Home Loans, BVA BVRC Q3 data).In many locations where property prices have been static, landlords have been able to capital raise to expand their stock to secure some good value flats and houses.
Whilst confidence indicators for the UK private rental sector seem relatively low, there is still plenty of business to reach for specifically in mortgage types which benefit from advice, such as in the portfolio market, limited companies, credit blips and HMOs.
In our survey, 63% of landlords told us that they plan to buy their next BTL through a ltd company, up from 55% three months ago. Landlords letting HMOs also reported seeing the highest rental yield of all property types at a national average of 6.5%.
However, a key factor for landlords remortgaging or purchasing continues to be the upfront costs, which is why we have launched a range of products without any upfront fees at all. Still exceptionally competitive for rate, these ‘fee-assist’ deals change the game for brokers looking to help facilitate more activity for their property investor clients.
Brokers can now arrange single or multiple remortgages and purchases without having to account for an arrangement fee or valuation fee, which makes these deals particularly attractive for large properties (up to £750k) or multiple property portfolios. Non-standard property types and HMOs up to 6 occupants are also eligible. Unlike many other lenders’ buy-to-let products, Foundation rates are equally accessible to landlords buying as individuals or limited companies, even if only recently incorporated. The rates are fixed for 5 years, helping with long term budgeting and revenue predictability security for the forthcoming years.
Because these new fee-assisted, buy-to-let products are also available to borrowers with a near-perfect credit record or with recent blips on their credit record, you can open a few more doors for borrowers who aren’t eligible through many other lenders.
If you want to do more for your landlord clients, or if you are expanding your advice to cover limited company lets and borrowers with near-perfect credit scores or credit blips, speak to TFC Homeloans now.
ARTICLE FROM FOUNDATION HOME LOANS