During the discussion, supported by Accord Mortgages, Liz Syms, proprietor of Connect Mortgages and Connect for Intermediaries, examined the complexities of the buy-to-let (BTL) market. Despite the diversity of BTL products, Syms highlighted unexplored product gaps.
One concern she raised was retention in the BTL sector. Some refurbishment products allow a bridge first, followed by a refinance onto a term. However, the market currently offers fewer products than in the past. Specifically, a shortage of products permits a term from day one on a property needing refurbishment while incorporating retention for associated costs.
Mortgage Solutions
Syms proposed that clients could secure an exit without incurring bridge loan expenses if a lender introduced a product featuring retention. Moreover, she emphasised the availability of financing for modern construction methods (MMC) from developers. Despite this, she lamented the absence of a corresponding presence in the mainstream mortgage sector despite the growing significance of the green agenda.
Greg Cunnington, Chief Operating Officer at LDNFinance, acknowledged Accord’s positive changes in its interest coverage ratio, enhancing affordability. While recognising the effectiveness of top-slicing by Clydesdale and Barclays, Cunnington stressed the need for more lenders to adopt a pure top-slicing model.
He suggested that lenders could differentiate themselves by offering unique products. For example, let-to-buys for those seeking a chain-free experience, with the added incentive of a stamp duty refund if the property is sold within three years.
This discussion marks the first instalment of a four-part buy-to-let debate series. Notable panellists include Jeremy Duncombe, Managing Director at Accord Mortgages, Liz Syms, owner of Connect Mortgages and Connect for Intermediaries, and Greg Cunnington, Chief Operating Officer at LDNFinance.
The series, hosted by Victoria Hartley, Group Editor at Mortgage Solutions, aims to provide insights into the evolving buy-to-let market. The second part is scheduled for broadcast on Wednesday, May 25th.o
