According to the National Landlords Association (NLA), 67% of landlords will arrange a buy-to-let mortgage towards the funding of an investment property that they are then going to let out. Presumably the rest will source the funds from the likes of savings or borrow the money from other sources such as family.
However, it is concerning to read that about 300,000 landlords (approximately 20%) who had wanted to buy more properties to rent out in the past 12 months were unable to do so as they were struggling to raise finance. Apparently, over the following 3 months, 31% of landlords intend to seek borrowing by way of a buy-to-let mortgage or re-mortgaging.
Interestingly, 56% of landlords taking part in the survey felt that the criteria for buy-to-let mortgages was shall we say rather conservative. Also, 59% of landlords expressed their concern in this survey that providers of such finance do not take into account their personal circumstances.
This will concern many landlords, both existing and those wanting to venture into this sector for the first time. One would have thought that lenders would be more supportive of landlords in view of the fact that we appear to have an inadequate supply of good quality housing to cater for our ever increasing population here in the UK.
After all, there appears to be a ready supply of tenants so funding buy-to-let mortgages should not be a problem if the potential landlord has done his or her sums correctly. Furthermore, the lender should have a good security margin.
We would welcome the views and experiences of our readers so feel free to leave your comments. For instance, do you feel that the Government here in the UK should be putting more pressure on mortgage lenders to be more supportive towards landlords seeking finance?
We look forward to receiving your comments.