Landlords struggling to find BTL finance

The market place for buy to let finance has rocketed in recent months with more than 900 financial products available but a growing number of landlords are struggling to access the market, claims research.

A study has been undertaken by online agent Property Let By Us and, the firm says, the struggle means that many landlords cannot expand their property portfolio.

Around one in 10 landlords is finding access to buy to let mortgages difficult in the last two months though 82% of landlords have managed to secure a mortgage successfully.

The firm’s report also reveals that 80% of landlords said they had issues with rent arrears over the past year, 25% said they had served an eviction notice while 7% had resorted to court action to evict a tenant.

However, the report also reveals that void periods are continuing to fall as demand outstrips supply.

‘Buy to let is not as easy as many believe’

The research also reveals that buy to let is not as easy as many people believe, says the managing director of Property Let By Us, Jane Morris.

She explains: “The buy to let market is booming which is good news but the real picture isn’t so rosy. Rents are spiralling which is good for yields but the downside is landlords are risking rent arrears.”

“Finding finance is also getting tougher for landlords which means landlords will need bigger deposits and are facing tighter checks before being granted a buy to let loan.”

She added that the amount a landlord can borrow with a buy to let mortgage is expected to fall by several thousand pounds over the coming months.

In addition, landlords are also facing tough new criteria when applying for loans and a growing number of lenders are not just calculating the loan on rental income alone but are also insisting on an annual income of at least £25,000 a year.

New buy to let lending criteria for landlords

The new buy to let lending criteria is also expecting landlords to budget for property repairs and void periods.

Landlords now look like facing the questions that are usually asked for residential mortgages which cover things like childcare and household bills.

Ms Morris said: “Landlords need to research lenders and ensure they can meet lending criteria before even applying for a buy to let mortgage.”

Tenant turns a home into a REAL pigsty

Meanwhile, many landlords will have horror stories about what tenants have done to their property but spare a thought for a landlord who discovered a 50 stone pig in his rental home.

Dr Gary Armstrong was checking his property when he found the pig, complete with tusks, asleep on the sofa despite having a ‘no pets ban’.

He has now been left with a £7,500 repair bill.


About S Thompson

Simon Thompson is Editor of Landlord News and CEO of

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