1 in 8 mortgages now BTL

Thrugelmir

IveSeenTheLight wrote: »

BTL usually have : -

1. Higher deposits
2. Higher interest rates compared to residential

These two simple points mean it's a lower risk to lend to BTL with a higher return.

Also tighter lending criteria. Minimum other income and already a homeowner being 2.

Then there's the high arrangement fees.

IveSeenTheLight

Thrugelmir wrote: »

Also tighter lending criteria. Minimum other income and already a homeowner being 2.

Then there's the high arrangement fees.

All reasons why lenders prefer BTL, but not why they are preferential to the lendee as opposed to a FTB mortgage,

BTL's cost more to the borrower

Thrugelmir

IveSeenTheLight wrote: »

All reasons why lenders prefer BTL, but not why they are preferential to the lendee as opposed to a FTB mortgage,

Particularly those who had consent to let and are being forced to switch on to BTL.
Much better margin for the banks.

I suspect this is in part the reason for the large growth of new mortgages.

IveSeenTheLight

Thrugelmir wrote: »

I suspect this is in part the reason for the large growth of new mortgages.

Possibly, but there's probably a significant quantity expanding their portfolio.
I know I did in the last year.