Landlords Left With Less Choice of BTL Mortgage Products

The BTL mortgage market is un-recognisable to how it was 18 months ago.

The post credit crunch 're-structure' of the financial institutions, the re-thinks on lending policy and the realisation that we were sitting on a property market built on sand has seen a once swollen grape turn into a raisin.

According to the price comparison website Moneynet.co.uk,who power our BTL mortgage search, eighteen months ago the BTL mortgage market had around 100 lenders, compared to the 30 that remain today.

Investors and landlords will need to place a deposit of between 30% and 40%, up from the 10% to 15% deposits they could get away with pre-credit crunch.

To add to the difficult BTL market conditions , some lenders demand a fee of up to 2.5% of the amount borrowed for a loan of just two years.

Personally, I like the idea of less BTL mortgage products available.

I find too much choice a headache. The growth in product options lead to the growth of BTL mortgage brokers to help landlords make ever more complicated choices,but many of these have now gone or are just about hanging on.

So it's not choice that landlords need, it's decent rates and products.

As for now most landlords are left with a ' Hobsons choice' of staying on their Standard Variable Rate (SVR ), and what choice is that?


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