Home » Uncategorised »
Many investors struggling to secure mainstream funding
This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.
Around 75% of buy-to-let investors were able to raise alternative finance during the last year, after struggles to obtain mainstream funding.
According to mtf data, 44% of these investors saw affordability as their main obstacle in obtaining mainstream funding- followed by adverse credit (34%) and stricter lending criteria (22%).
Alternative Lending
This said, 47% of investors took out a secured loan as an alternative, with 39% opting for a bridging loan.
Another three-quarters of landlords questioned intend to expand their portfolio during the remainder of 2017. Encouragingly, 67% are looking in London, with 33% targeting the South East. This will come as a relief following reports of landlords leaving the sector as a result of the recent alterations to mortgage interest tax relief.
When asked how the sector could be improved to help landlords, the majority responded by saying that they would like the see the additional 3% Stamp Duty surcharge on buy-to-let properties scrapped.
Many investors struggling to secure mainstream funding
Tough
Tomer Aboody, director of mtf, noted: ‘The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.’[1]
‘It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers,’ Aboody added.[1]
[1] http://www.propertyreporter.co.uk/finance/majority-of-property-investors-unable-to-secure-mainstream-funding.html
