BTL landlords in pole position to withstand market volatility

A specialist lender saw a significant rise on the FTSE 250 yesterday, with buy-to-let mortgages and loans experiencing above-forecasted demands.

OneSavings Bank is seeing significant rewards after upping its focus on professional landlords since the Brexit vote. The lender believes buy-to-let investors are, ‘better positioned to withstand market volatility.’

Business

The bank is looking to gain further business moving forwards by lowering its standard variable rate by 0.25% from September, in line with the Bank of England’s recent cut.

Specialising in buy-to-let mortgages and loans to small businesses, OneSavings Bank saw its pre-tax profits rise by 36% to £64.6m in the first half of the year. This helped boost its share price by 16.9% by the close of trading yesterday.

Andy Golding, chief executive at OneSavings, believes it is way to early to predict the long-term implications of Brexit on the buy-to-let sector, the housing market and the economy as a whole.

He observed, it is too soon to predict the medium to long-term impact of Brexit on the UK economy, but we will continue to concentrate on what we have proven we do best-using our broker relationships, manual underwriting expertise and secured lending strategy to lend responsibly to customers in undeserved markets.’[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/8/buy-to-let-investors-are-better-positioned-to-withstand-market-volatility