Buy-to-let landlords on the lookout for the most competitive deals available have been offered a holding hand by Mortgage Broker Tools, which this week named the five most affordable lenders in the UK for BTL investments.

With reformed policy squeezing private landlords harder than ever before, any and all savings that can be made on the costs of purchasing properties are understandably welcome. BTL landlords are facing increasingly heavy tax liabilities and difficulties qualifying for affordable mortgages on the High Street, the result of governmental initiatives aimed at levelling the playing field with the private lettings sector.

The Top Five BTL Lenders for Affordability

According to the report published by Mortgage Broker Tools, Gatehouse Bank topped the rankings as the most affordable lender for BTL investments. They were followed in second place by Tipton & Coseley Building Society, with Hinckley & Rugby Building Society falling behind in a close third.

Interbay took the fourth spot in the rankings, with Furness Building Society coming in at fifth.

In addition to the front runners, Mortgage Broker Tools also highlighted both Clydesdale Bank and Barclays as strong performers for BTL investors.

For expats looking to purchase buy-to-let properties, the top performers were Darlington Building Society and Saffron Building Society.

They also examined specialist mortgage products for holiday let properties with the top providers in this category named as Principality Building Society and Ipswich Building Society, with the latter having only recently come to market.

BTL Investors Urged to Compare the Market Aggressively

Commenting on the findings, Mortgage Broker Tools CEO Tanya Toumadj highlighted the criticality of comparing the market in full and looking beyond the High Street to get the best possible deal on a BTL mortgage.

ALSO READ  A brief guide to the CeMAP course

“Affordability calculations are important for buy-to-let investors who want to maximise their leverage, so it’s really interesting that the top five lenders for affordability are arguably lesser-known lenders in this part of the market,” she said.

“This shows the importance of shopping around and carrying out thorough research.”

She also spoke of how the combination of broker support and technology is helping BTL investors find increasingly competitive deals from a growing network of specialist lenders.

“Every case is different and affordability results vary depending on the individual circumstances of a customer. Often the most suitable lender for a client may not be the lender that a broker first thinks about. So, technology platforms like MBT Affordability are a vital tool for mortgage brokers in helping them to make sure they are providing the most suitable recommendations based on their client’s requirements,” commented Ms Toumadj.

“At MBT we have also developed a criteria tool that works alongside our affordability results to help brokers ensure they are choosing the right lender for their client’s specific circumstances. And we have used our access to rich data from real enquiries to create MBT Analytics, which helps lenders to target affordability enhancements to very specific client cohorts, enabling them to develop their offering and ultimately help more customers.”

Author: Craig Upton