Another mortgage lender has put forward its plans to join the consumer buy-to-let and initial-landlord market during the coming months.
Accord Buy-to-Let, an intermediary-only lender of the Yorkshire Building Society Group, has acknowledged recent changes are making buy-to-let investment more attractive than ever. Record-low interest rates and volatility in the stock market are certainly contributing to the appeal.
Buy-to-let investment remains popular despite the increase in Stamp Duty, removal of wear and tear allowance and alterations to mortgage interest tax relief, scheduled for next year. This is due to the fact buy-to-let has performed better than other investment types during recent times.
These include mainstream investments such as commercial property, UK Government bonds and cash.
Chris Maggs, Buy-to-Let commercial manager at Accord, noted, ‘we continually review how we can develop our mortgage proposition to best suit the needs of landlords. Despite the uncertainty in the buy-to-let arena we believe that it will remain a robust market.’
‘As part of our commitment to support landlords we plan to expand into the consumer buy-to-let and first-time landlord markets in the coming months,’ he continued.
Buy-to-Let will remain robust, says lender
Just this month, Accord Buy-to-Let announced changes to its buy-to-let mortgage range. In addition, the lender launched a range of new tracker mortgages, giving landlords flexibility to exit their mortgage deal early without repayment fees.
Maggs observed, ‘there is a lot of uncertainty in the market due to the recent taxation changes impacting landlords and the tighter underwriting controls lenders are adapting to ensure landlords are not over committed and can support their property portfolio.’
‘It is imperative that lenders look to support landlords by creating innovative products which provide flexibility in a changing environment,’ he concluded.