CCR Magazine

You are here  :Home arrow News arrow Portfolio landlords 'increasingly looking to capital raise', says Fleet Mortgages
Contact Us Newsletter Signup RSS Feeds

Latest News Headlines

Headlines

 
Commercial Credit News

Headlines

 
Portfolio landlords 'increasingly looking to capital raise', says Fleet Mortgages PDF Print E-mail
Friday, 01 December 2017
Fleet Mortgages, the buy-to-let and specialist lender, has today (30th November 2017) suggested portfolio and professional landlords are ‘increasingly looking to capital raise’ via remortgaging in order to purchase property with strong rental yields. 

Fleet Mortgages has pointed to the findings from the most recent ARLA Propertymark report as an indication of the reasons why landlords might now be looking to capital raise via a remortgage.

The latest report revealed:

· A decrease in the number of private rental sector (PRS) properties managed per branch – down to 182 in October from 189 in September, and the lowest since October last year.
· Nearly a quarter (22%) of all agents saw a rise in rents across their managed properties.
· Only a 0.1% increase in the number of tenants achieving a reduction in their rent.

Fleet Mortgages believes a shift in the PRS environment means that the sector could be undergoing a drop in the supply of properties, which is likely to mean that rents will inch up further, and the attraction of adding to portfolios for landlords will continue to rise.

Added to this, while Fleet Mortgages’ anticipates house prices to continue to move up, it describes today’s environment as ‘relatively benign’ and believes a large number of landlords will feel now is as good a time as any to purchase, and to keep building portfolios.

Fleet Mortgages recently launched two new pay-rate five-year fixes in its Standard (Individual) and Limited Company ranges. The Standard product is offered at 3.89% with an ICR of 135% at pay rate; the limited company product is again offered at 3.89% but this time with an ICR of 125% at pay rate. Both products come with a revert rate of LIBOR plus 4.2%.

Bob Young, Chief Executive Officer of Fleet Mortgages, commented: “There seems to be a perception in the market at the moment that remortgaging to capital raise is very hard but that’s certainly not true in the case of Fleet Mortgages, where we have few barriers to remortgage, the same simple criteria across the piece and borrowers can capital raise up to 75% LTV.

“We’ve seen a noticeable uptick in the numbers of savvy landlords/investors talking to us about their purchase plans, and I suspect that many professional and portfolio landlords will be increasingly looking to capital raise in the months ahead. Advisers are likely to be in demand for this type of work and should be aware of the portfolio landlord lending options that are available.

“A number of market fundamentals look likely to move in favour of those seeking to add to portfolios by purchasing well-priced properties with decent yields. Firstly, as the most recent ARLA research outlines, it appears the number of PRS properties on agents’ books has dropped, which means rents only have one way to go, as supply gets tighter. Secondly, it’s obvious that agents are already seeing rent rises in almost a quarter of their managed properties. Add into this, the relatively benign house price environment and it’s no wonder landlords want to add to portfolios.

“Advisers will of course need to look beyond the realms of pound-for-pound remortgages here but, from our point of view, we are intent on offering a far less complicated approach to portfolio lending and ensuring those borrowers who want to capital raise to purchase, have the ways and means to do so. This appears to be a ripe opportunity for these landlords and advisers have a clear opportunity to support their ambitions in this area by teaming up with a lender that is dedicated to servicing their needs.”
 

 Forums International Ltd

Forums International Ltd

 Attendance at your first meeting is free of charge, and please quote reference 'CCR2016' to receive the special 10% discount off of your first annual subscription.

Find out more here.

latest issue

CCR Cover

The latest edition of CCR Magazine, the leading editorial publication in the UK credit industry, is out.

Read the latest issue online

subscriptions

CCR is the premier magazine for consumer and credit professionals. It provides an independent voice to the industry, breaking major news stories and running in-depth features.

As a magazine, it works with and campaigns on behalf of the credit industry to promote its importance as a centre of potential profit and business development to the wider business world.

Subscribe to CCR Magazine

CCR World Magazine


 

Providing information and analysis for thousands of senior credit professionals worldwide, every quarter.

Find out more

GTS Media Ltd
81 Cambridge Road
Southend-on-Sea
Essex
SS1 1EP

Registered in England No: 05483197