The pressure of new tax changes inflicted upon property investors and landlords, coupled with ever-growing house prices has led to the Mansfield loosening the criteria for buy to let mortgages.
The lender has changed its policy in reaction to the current climate in the buy to let sector, allowing landlords and investors to borrow more. Customers will be able to borrow a maximum of £500,000 per property, a significant increase on the previous upper tier of £300,000. The firm will also lend when up to 15 mortgages remain outstanding with other lenders.
Buy to let landlords and property investors have been confronted with an influx of regulation in recent times, including cuts to mortgage tax relief and increased stamp duty. As a result, lenders have been offering products and adapting lending criteria tailored to an increasingly competitive market. Mansfield has already increased its loan to value for landlords to 75 per cent, whilst Kent Reliance recently launched its lowest buy to let rate at a mere 2.99 per cent.
Associate director at mortgage broker London & Country, David Hollingworth, has argued that it is important for lenders to remain adaptive to the swiftly changing market: ‘That is especially true in the buy to let market and particularly vital for smaller lenders to ensure their proposition remains relevant to its broker and customer needs. Mansfield’s approach underlines their desire to support buy to let landlords at a time when the market continues to face change. Adapting the maximum loan size and portfolio limit can only increase the range of landlord profile that they can assist.’
Mansfield’s national development manager, Steve Walton, has advocated for landlords and investors to be offered ‘more choice,’ especially in reaction to the recently instated tax changes. He said: ‘We’re taking these measures to make our individual underwriting proposition more exciting and available to larger portfolio landlords on higher value housing stock.’