BTL mortgage approvals fall, but there is an alternative

The latest data from the Bank of England show that demand the BTL mortgage figures fell by 1.2% (net) in the past three months. The figures come from the BoE’s quarterly Credit Conditions Survey in which they survey banks and building society lenders to gauge the current and upcoming trends within the financial market. The buy-to-let mortgage market had previously seen 2 quarters of steady growth; however, the total level remains 5% down since the first quarter of 2018.

The number of approved new mortgages fell to a six-month low in September, according to statistics released yesterday. Just 42,310 new residential mortgages were approved in the month according to UK Finance, and this highlights a downward trend seen since July. Whilst the graph below does show the market is vastly up from the end of 2018, with the latest figures showing a 13.5% annual increase, it also indicates that investors gaining approvals via the traditional mortgage market remain in the decline.

(Source: Tradingeconomics)

When asked about the housing market in general, commercial director of MT Finance, Gareth Lewis, was quoted as saying “First-time buyers are keen to get on the ladder and have a wide range of affordable mortgages to choose from. Sentiment from them is positive; they feel now is as good a time as any to buy. But it is the next phase – the second steppers with families who need more space – who may be finding it harder to make the jump and are feeling the pinch more”.

With the overall mortgage market casting a gloomy shadow over the UK, investors could see bridging loans as an ideal way to finance their next property purchase.

Bridging loans offer many advantages to property investors as they can overcome hurdles seen in mainstream lending. These include the speed and ease in which loans can be issued and that credit issues may not apply.

In many cases, a bridging loan for a property purchase can be approved within hours of the application being made. This is ideal for those wishing to purchase property in an auction or on a tight deadline to complete.

In terms of credit restraints, bridging loans from MT Finance can often be approved regardless of poor credit history or CCJs in addition to no credit scoring taking place or personal guarantees being required.

To get further details on bridging loans for a BTL mortgage, call MT Finance on 0203 051 2331 to speak to a dedicated team member or leave your details on the contact form.

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