Letproof Blog

Letproof Blog

Welcome to the Letproof.com blog. We aim to bring you up to date on things happening in the property market.


As landlords are preparing for new rules and potential squeezes in 2017, turning to buy to let brokers is looking particularly attractive.


As landlords with more than four properties will have to submit income and mortgage details on all properties, every time they refinance one, or purchase a new property, the workload for lenders is going to increase significantly.


Ray Boulger, of mortgage broker John Charcol, said: 'Although these new rules don’t come into force until this time next year, most lenders are likely to introduce them before that date. That is likely to result in many lenders withdrawing from the market.'


Rather than leaving the market altogether, it’s possible that lenders will shift their focus to landlords with three or more mortgaged properties, or that they will do more digging into a landlord’s background first.


However, another option for buy to let lenders is to limit distribution channels to experienced buy-to-let brokers. Because brokers get preferential rates and have a far wider selection of lenders to access than the high-street options, turning to brokers could be an attractive option. Particularly where larger portfolios, multi-unit properties or large loan sizes are involved - these more complicated buy to let's are not always suitable for high street lenders and brokers could take advantage of this.


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