Fall in mortgages for first-time landlords

Fall in mortgages for first-time landlords

The proportion of mortgage deals for new landlords has shrunk to a record low despite the fact that the overall number of buy-to-let mortgages has actually increased over the past year, new research from Moneyfacts.co.uk shows.

Despite all the changes to regulation in the buy-to-let property market, the volume of buy-to-let mortgages has increased; however, first-time landlords have been missing out on this boost in product numbers, with the percentage of the market that is available to new landlords has now dropped to just 75%, down by around 10% in two years, according to the study.

Charlotte Nelson, finance expert at Moneyfacts.co.uk, believes that because first-time landlords do not have a proven track record in managing rental properties, they are perceived to pose a higher risk to the lender which is why the number of first-time landlord deals remain relatively static.

Nelson said: “The additional regulation in the BTL market and the added economic uncertainty following the Brexit vote means even more lenders may reconsider whether first-time landlords are a 'safe bet'. As a result, would-be landlords are likely to face more probing questions about their finances than their more experienced counterparts.

“Nevertheless, high rents and rock-bottom mortgage rates mean that BTL is still an attractive proposition for aspiring landlords, particularly those who are fed up with the dismal savings options currently available. However, BTL is not without its risks, so anyone considering it as an option should seek the advice of an independent financial adviser to determine whether it is the best choice for them.â€

Five years ago

Two years ago

One year ago


Number of buy-to-let products available to first-time landlords





Percentage of the buy-to-let market that is available to first-time landlords





Source: Moneyfacts.co.uk


Compiled: 4.7.16


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