Despite turbulence caused by increased taxation and continually changing regulation, alongside today’s political and economic confusion, confidence in the Buy-to-Let sector remains high. This is evidenced by the banks, who continue to offer an extensive range of creative buy-to-let mortgage products. 

BTL finance was hardest hit immediately following the last financial crisis, which was widely recognised as being partially caused by irresponsible mortgage lending. Dramatic changes in lending criteria came into force following the Mortgage Market Review (MMR) in 2014, with lenders initially very reluctant to stick their head above the parapet. 

However, time has moved on, and the property investment market has proven to be very resilient - even flourishing - with a 20% increase in property values during the two years of the pandemic. This has meant that many landlords now have a lower LTV (loan-to-value) ratio than they did when they first purchased. Rents have also risen (by over 40% a year in some areas) further protecting their investments. The two factors alone present a lower-risk case to lenders (who still want to lend), meaning that investors can secure preferential rates that go some way towards offsetting the recent increases in mortgage interest rates. 

Investors can take comfort from the fact that the banks’ economists have clearly decided that it’s business as usual and that property investment remains firmly on their map as a relatively safe and secure proposition, irrespective of any wider economic or political turmoil. 

If you’d like help in assessing any property for its suitability as a BTL investment, why not speak to one of our investment managers today on 0208 359 3399    

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