Exploring the Future of Buy-to-Let Lending with Insights from Ahmet Tunsay

Understanding the Current Landscape of Buy-to-Let Lending

As interest rates fluctuate, they significantly impact the UK’s buy-to-let lending market. Property owners and investors are navigating an increasingly complex financial environment, where affordability and regulatory nuances shape their decisions. We explore insights from Ahmet Tunsay, a Business Development Manager at OMS, who shares valuable perspectives on how landlords can maneuver through these changes.

The Importance of Adapting Lending Criteria

Tunsay emphasizes that lenders must adapt their criteria to remain competitive and cater to the evolving needs of landlords. He notes, “We’re focusing on giving brokers the tools to adapt quickly.” Advanced tools for stress-testing deals, filtering lenders based on rental coverage, and ensuring compliance with EPC requirements are essential for brokers in a tightening market.

Who Is Leading the Charge in Buy-to-Let?

Currently, the market is witnessing a surge in interest from experienced portfolio landlords, particularly those investing in Houses in Multiple Occupation (HMOs) or multi-unit freehold blocks. These landlords, with solid rental yields and track records, are becoming increasingly attractive to lenders. The preference for properties with Energy Performance Certificate (EPC) ratings of C or above comes in the wake of a growing awareness of sustainability in the housing sector.

Innovative Products for a Changing Market

The next 12 months are predicted to see a shift towards more innovative loan products within the buy-to-let space. Tunsay foresees a rise in flexible offerings such as part-and-part mortgages and long-term fixed rates aimed specifically at limited companies or HMOs. As landlords are confronted with higher rates than previously experienced, the need for lending solutions that enhance affordability becomes critical.

Strategies for Portfolio Landlords

Increasingly, portfolio landlords are restructuring and expanding their investments. Tunsay mentions that OMS’s platform provides brokers with the ability to manage complex cases involving multiple properties and Special Purpose Vehicles (SPVs) effortlessly. This functionality streamlines the application process, offering a smoother and more efficient experience for both brokers and landlords.

Key Refinancing Advice for Landlords

For landlords considering refinancing in 2025, Tunsay offers straightforward advice: “Start early and be organized.” With tightened affordability and intricate lending criteria, having detailed information about properties, income, and portfolios readily available is crucial. A complete and accurate case can significantly enhance the chances of securing favorable lending terms.

The Evolution of Technology in Property Finance

Technology is becoming a cornerstone of the lending process, enabling brokers to adapt quickly to market changes. Tunsay highlights the importance of Customer Relationship Management (CRM) systems like OMS in helping brokers source suitable products and efficiently manage stress tests and client cases. This technological shift is crucial for navigating complex market dynamics.

The Importance of Monitoring Legislative Changes

Landlords are also urged to stay abreast of regulatory changes affecting their investments. As housing regulations evolve, the demand for properties that meet new standards, particularly those aimed at improving energy efficiency, will rise. Awareness and compliance with these regulations can not only aid in securing financing but also enhance long-term property value.

Navigating the labyrinthine landscape of buy-to-let lending requires a concerted effort from both landlords and brokers. With changing interest rates and stringent regulatory frameworks, understanding the market's dynamics can empower property investors to make informed decisions. We encourage you to leverage technology and industry insights to stay ahead in this challenging space.