New research from Sainsbury’s Bank Mortgages indicates that almost one in 10 (9%) UK adults have shown an interest in taking out a Buy to Let (BTL) mortgage in 2018. This means that across the UK, 4.8 million people could become landlords in 2018.
Of those taking out or considering a BTL mortgage, over a third (35%) said a change in income had inspired them to do so, while 3 in 10 (29%) remain encouraged by the current opportunities to enter the Buy to Let market.
A quarter (25%) were considering a BTL mortgage after receiving inheritance and many here may have found themselves “accidental landlords”. Yet the research indicates that two in three (64%) of UK adults don’t know what Consumer Buy to Let mortgages are.
The findings follow the news that Sainsbury’s Bank is extending its mortgage range with the launch of new BTL products including support to accidental landlords. These products are solely available via the Bank’s large broker partner network, who are experts in providing advice on the many forms of buy to let ownership.
When it comes to purchasing a property, over half (51%) of potential landlords have considered buying a house, with 46% having considered purchasing new builds prior to this year. 46% have also considered purchasing a flat, with 44% having considered buying new build flats.
The new products are designed for those looking to purchase or remortgage, with lending being made available to individuals who hold a maximum portfolio of 3 BTL mortgaged properties, illustrating the importance the Bank places in smaller investors.
The various products are available across 2 and 5 year fixed terms. Lending is available up to £1m with a 60% LTV, and £500k up to 75% LTV(3).
David Buxton, Head of Banking at Sainsbury’s Bank, said: “With demand for rental properties showing no signs of slowing down, we’re delighted to be able to help landlords by offering competitive mortgages and advice to help them best manage their investments.”