Accord offers let to buy market for first time landlords

Lender extends offering to first time landlords

Accord Buy To Let has expanded its offering for first time landlords after seeing applications from those making their initial move into the market double in the space of a year.

Since it began lending to first-time landlords in July last year, Accord Buy To Let has seen applications double from aspiring landlords. Following this, the lender is moving into the let to buy market for first time landlords.

The lender, which already lends on this basis to existing landlords, will now also offer mortgages to homeowners who want to become landlords by buying a new home and letting out their existing property.

To support this, Accord Buy To Let, which is part of Yorkshire Building Society Group, has launched two new mortgages designed to help borrowers wanting to become first time landlords by letting out their existing property and purchasing a new residential home.

These fixed rate products, which both have £1,000 cashback to help with the upfront costs of property investment, would enable new landlords to remortgage their existing property as a buy-to-let. Available to borrowers with at least 25% equity in their property, there is a 2.89%, fixed for two years and a five year fixed rate at 3.19%. Both come with free standard valuation and a £195 product fee.

Chris Maggs (pictured), Accord Buy To Let’s commercial manager, said: “The buy to let market has undergone some significant regulatory and tax changes in the past three years, which have undoubtedly resulted in a more challenging environment for landlords. However, it’s clear that there is still appetite for first time investment in the sector.

“Since we entered this market in July 2017, we’ve seen good levels of applications from first time landlords, with the quality at a similar level to more experienced landlords.

“We’re very keen to support new landlords and would like to do more for those wanting to enter the buy-to-let sector. We’re aware that the first venture into buy-to-let for many landlords is to buy a new home and rent out their former residential property. That’s why we’re now offering mortgages on a let to buy basis for first time landlords and have launched two new bespoke products for aspiring landlords.

“We hope these mortgages will prove popular with brokers and their clients who are looking to make their first move into the buy-to-let sector.”

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