Nearly a third of UK landlords are planning to seek additional funding so they can expand their property portfolios over the next three months, according to a recent article from the National Landlords Association (NLA).
67 per cent of landlords use buy-to-let mortgages to fund their portfolio, but around 300,000 landlords have been unable to obtain buy to let finance over the last 12 months.
59 per cent of those seeking funds say that lenders do not take into account their individual circumstances, while 56 per cent claim that criteria for lending is too restrictive.
The NLA believes that landlords and would-be landlords should be able to access a range of lending options. The two key methods of obtaining buy to let funding is by approaching a lender directly, or going through a broker.
The report cites Carolyn Uphill, NLA chairman, as saying, “A significant number of landlords are having trouble accessing finance and expanding, which is a major concern because the private sector is vital in meeting the ever increasing demand on housing at the moment.
“Many landlords are frustrated as lending criteria is too prescriptive. There’s no one size fits all mortgage, and as the leading landlord association in the UK we understand that landlords need access to a range of products that meet their specific individual circumstances.”
Entering the Buy to Let Sector?
The financial rewards offered by a buy to let investment continue to inspire many landlords and would-be landlords to seek buy to let funding.
Once financed, a key consideration of a new buy to let landlord is ensuring their new property is protected against common perils – including fire, flood and theft. Optional cover for such risks as rent recovery and rent guarantee and damage are also worth considering. Click4quote.com can provide buy to let property insurance for individual landlords or for those that have a portfolio of properties. Why not see how we can help provide protect for your rental property investment.