Three small words, condensed into just 3 letters, BTL. From modest beginnings these 3 letters have come to describe a huge part of the UK mortgage market which is now so varied that such a short title hardly seems to do it justice.
1996 saw the launch of the first wave of standard Buy to Let mortgages. Available up to a maximum loan to value of 75% with strict property and occupancy terms, this first wave of lenders offered the only real alternative to expensive commercial mortgages. A typical commercial mortgage of the time would be expensive, limited to a 10-year term and offered with a capital repayment option only. The new Buy To Let mortgages brought substantial improvements with terms of up to 25 years and an attractive Interest Only option.
Wind the clock forward 26 years and we now have a sophisticated and multi-faceted industry that caters for a huge array of landlord and tenant requirements.
Houses of Multiple Occupation (HMO’S) – satisfying the needs of students and city workers all over the country.
Multi-Unit Blocks (MUB’s) – Providing private space living accommodation for multiple families under one roof, within properties previously difficult to obtain finance on.
Holiday Lets – A COVID created boom in staycations has elevated this previously niche market into a buoyant sector with hugely attractive returns for investors.
The growth of the market has attracted a large number of mortgage lenders all of whom are looking to provide products and criteria in an increasingly competitive market. This competition of course provides great choice for customers who can now borrow money against an endless list of property scenarios: flats above commercial property, high-rise flats, non-standard construction, low value property, very high value property, semi-commercial properties, ex-local authority properties; people can even arrange to move house whilst retaining their existing property on a buy to let mortgage. Here at Complete FS Ltd we have a panel of specialist Buy to Let lenders who can cater for pretty much every possible scenario. Having added three new entrants in 2022 alone, we now have over 30 lenders all looking to service this highly competitive market.