Mortgage Market Sees Significant Shifts as Lenders Revamp Products and Services
The mortgage market is witnessing significant changes as lenders revamp their products and services to adapt to the evolving needs of borrowers. In a recent development, Lendco has successfully closed its fourth public buy-to-let mortgage-based securitisation under its Atlas programme, marking its largest issuance to date at £408m. [1] This transaction, which attracted significant investor interest, resulted in the tightest pricing for an issuance in the programme’s history.
Image: UK Housing Market
Simon Knight, CEO of Lendco, expressed his delight at the successful completion of the securitisation, which comes hot on the heels of the company winning the Best Specialist BTL Lender award last week. [2] He attributed the high demand for the securitisation to the increasing recognition of the Atlas and Lendco brands amongst investors.
In another development, NatWest has revamped its buy-to-let affordability calculator, portfolio assessments, and stress tests to make loan applications easier for brokers and their landlord customers. [3] The lender has introduced a streamlined BTL affordability calculator that only requires 11 key questions for the majority of customers. Additionally, the lender will no longer require personal income assessments for portfolio landlords, making the process more efficient.
The changes are a welcome relief for brokers, who can now quickly calculate the cost of a loan and validate customer income without having to provide extensive documentation. Brad Fordham, Head of Mortgage Distribution at NatWest, believes that the changes will make the lender even more reliable, consistent, and flexible for landlord customers.
These developments come at a time when the economy is experiencing a stronger outlook, which may seem peculiar given the timing of the upcoming election. [4] However, experts believe that the growth is a result of the UK’s resilience in the face of uncertainty.
In other news, the cost of living crisis continues to affect savers, with fixed-term ISA rates picking up again. [5] Every Thursday, Savings Champion founder Anna Bowes provides an insight into the savings market and how to make the most of your money.
As the mortgage market continues to evolve, it’s essential for brokers and borrowers to stay informed about the latest developments and changes. With lenders revamping their products and services, there are opportunities for borrowers to find better deals and for brokers to grow their business.
References: [1] Lendco closes £408m buy-to-let securitisation [2] Best Specialist BTL Lender award [3] NatWest revamps BTL calculator, portfolio assessments, and stress tests [4] Stronger outlook for economy despite election timing [5] Fixed-term ISA rates pick up again
