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Accord Mortgages boosted its buy to let selection during 2017 and aims to continue this trend during 2018, even amidst a changing market.
Increased regulation in the buy to let sector has led to suggestions that the market could be declining. The removal of mortgage interest tax relief and the Stamp Duty markup have meant that some landlords, and subsequently lenders, have lost confidence in the sector. However, Accord have spoken out about the sector’s resilience and claim that the following year will see a continued focus on buy to let lending.
National intermediary sales manager at Accord, David Robinson, said: ‘We didn’t grow massively but we increased our market share and there wouldn’t be many lenders who could say that they grew their buy to let lending last year. We still want to continue to focus on buy to let even though it’s a market that has its challenges. Residential lending is still the majority of our lending but buy to let lending is a significant part of what we do and we still see options in the buy to let market, more so than the residential market.’
In contrast to the dominant narrative, Accord Mortgages visualise the changing market as one that will bring new opportunities, ranging from remortgaging products to aiding portfolio landlords. This is in line with new data which suggested that 65 per cent of property investors remained optimistic about the sector, with a mere 14 per cent concerned about the performance of their portfolio in 2018. The survey found that many of the landlords who cited optimism were aware that they may need to adapt their portfolios and business models in the long term.
Robinson continued: ‘I think the buy to let sector is more of an opportunity than a threat. We want to grow our buy to let lending more this year too, recognising the market is still going to be bleak and will perhaps reduce a bit further. But there are opportunities in the market such as remortgaging and portfolio landlords. Consumer buy to let and remortgages are two of our key areas going forward.’