Search the Community

The proposed taxation change to the relief given on BTL finance costs announced in the Summer Budget, together with potential macroprudential action by the Financial Policy Committee to reduce risks emanating from BTL lending, could lead to fundamental changes in the BTL lending market over the next few years. I've therefore started this thread so that we can monitor trends in BTL mortgage financing. Items are interest are (for example) changes in the levels of BTL lending on lenders' balance sheets, average LTVs of the BTL mortgage book, arrears and non-performing loans, mortgage rates, underwriting standards (e.g. minimum rental cover). Please contribute if you come across any relevant info. --------------- First up is Coventry Building Society, which reported H1 2015 results this morning. In the six months to 30 June 2015, outstanding owner occupier mortgage balances increased by £901m whereas outstanding BTL balances rose by £930m. 36.8% of Coventry BS's mortgage book is now accounted for by BTL. Mark Parsons, CEO: "Whilst the interest we pay to savers continues to be substantially above the average in the market, we believe the challenge of a historically low interest rate environment is also encouraging people to seek out higher yielding alternatives to traditional savings accounts, including the buy to let sector. In this context, we believe the relationship between savers and borrowers has changed, as many investors now look to the rental market as another means to diversify and supplement income."