FEATURE
LENDINVEST
Reliable lending in an unreliable BTL market Andy Virgo buy-to-let director, LendInvest
O
ver the past couple of months it has felt like nothing but change in the buy-to-let market. As interest rates have changed and wider economic challenges have begun to bite, it has felt like lenders left and right have been withdrawing products, changing rates, and generally signalling they aren’t willing to do business. This is obviously unwelcome news in a still-busy buy-to-let market; we’ve already seen how much remortgage business is out there and will continue to be out there and demand for highquality housing never really goes away. Also, if lenders put themselves first, it leaves landlords potentially looking for security and reliability in a changing market with few options. Navigating the current market requires reliability – from the person taking your
‘‘Lenders have a responsibility to their partners to not withdraw from the market when things get tough’’ call to the application and through to delivery – but it also requires lenders to be present. THE POCKETS TO KEEP FUNDING
Over the past couple of months, capacity to fund deals as competitively as was the case last year has become more of a challenge. Buy-to-let lenders who have diversified their funding lines have been better placed to manage the impact of changing interest rates. Our four securitisations and longstanding relationship with global lending partners like JP Morgan, Citi Bank, and NAB mean we entered this period with plenty of cash on hand to continue every type of buy-to-let project.
PITCHING YOUR PRODUCTS AT CLIENT NEEDS
Being available is the first step; the next one is ensuring the products you have in the market are what your brokers and their clients need. Our regional BDMs work closely with their broker partners, understanding the needs of their landlord clients. So far this year we’ve seen a lot of demand for remortgage products and future-proofing properties against upcoming EPC changes and any further economic challenges. Landlords have also been using this time to consolidate and improve their portfolios. As house prices have risen, we’ve seen more invest in their properties to improve yields as well as meet EPC requirements. This is where lenders who have bridging products and a smooth transition process can also meet landlord needs. So what are the right products for these needs? Hassle free bridge-to-let and refurbishment funding Special buy-to-let rates that reward landlords already meeting EPC requirements Long-term products, five-, seven-, and 10-year, which will future-proof investments against further instability in the market RELIABILITY AT EVERY STEP
The bar for being reliable is not just offering products and funding them – it is about being available to your brokers and their clients and responding to their needs. Lenders have a responsibility to their partners to not withdraw from the market when things get tough. From the BDM on the other end of a call or coming into the office, to the case managers and underwriters available at every step from application on, reliable lending is as much about the people as the products.
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BUY-TO-LET INTRODUCER JULY 2022
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