“BTL mortgages are good business for lenders and while the market has taken a hit due to property sales and increased stress rates they continue to look at ways of ensuring BTL business can continue for them."
Cox adds: “Since that point, rates have come off those highs and lenders have returned to those fixed-rate product spaces; there is now a far greater product choice available to landlord borrowers.”
Stress testing has come under great scrutiny as the higher rates have pushed many BTL businesses outside of the lending criteria.
Lenders continue to explore alternative ways of stress testing, especially existing BTL loans that have been previously approved under previous stress testing rates.
Ima Jackson-Obot is deputy features editor at FTAdviser
