Abbey looks to support B2L market

Abbey for Intermediaries is looking at entering the buy-to-let market in 2011 with products aimed at non-professional landlords.

Abbey currently has no products in buy-to-let sector but with the market growing over the last year, it says it is a market it’s keen to support next year.

Alan Mathewson, managing director at Abbey for Intermediaries, says: “What we’re looking at is the non-professional landlord, the type of landlord that maybe has one to three houses where they’ve not been able to sell their own property and ended up doing a buy-to-let, or the landlord that has inherited a house from their family.No decision has been made but that’s something we want to look at to support the market.”

In the current market renting a property is the only real option for many individuals unable to obtain mortgage finance, with a greatly diminished supply of mortgage products aimed at landlords, this is potentially good news for the buy-to-let sector.

Specialist providers such as CHL, Paragon, and BM Solutions are currently almost entirely absent from the market, while mainstream lenders are treating buy-to-let lending with caution. As a result demand is building in these products, and this may be an area where prudent lenders, with an appetite to support the sector, can increase their profit margins.

Resource:Mortgage Strategy