Specialist lenders step up to help property investors
According to mtf’s latest Property Investor Survey, 75 per cent of property investors were unable to secure mainstream funding in the past 12 months, with nearly half (44 per cent) attributing affordability as the main barrier.
34 per cent of those surveyed said they were unable to obtain mainstream funding due to adverse credit and 22 per cent blamed stricter lending criteria.
However, 75 per cent of investors revealed they had managed to raise alternative finance.
47% of investors got a secured loan as an alternative, while 39% opted for a bridging loan.
Three quarters of investors intend to expand their portfolio in 2017, with 67% targeting London and 33% looking to buy in the South East, in an encouraging move despite changes to tax relief for residential landlords.
A majority of respondents said scrapping an additional 3% stamp duty hike on buy-to-let and second homes would greatly help, when asked how the UK government could improve the private rented sector.
The results from our Q1 Property Investor Survey reflect the impact of stricter affordability and stress testing from lenders on professional property investors’ ability to obtain mainstream funding.
It’s certainly been a tough 18 months for landlords but alternative lenders are stepping in to meet the needs of borrowers.
For more information on how a bridging loan could help, call mtf on 0203 051 2331.