The Intermediary – October 2025 - Flipbook - Page 36
BUY-TO-LET
Opinion
Complications,
uncertainty,
opportunity
he mutual sector has
played – and continues
to play – a very
important part in the
in the more complex
buy-to-let (BTL) sector
of the market. Innovation is key
to helping existing and would-be
landlords. They need the best possible
advice and service from their lenders,
particularly as the BTL market has
become much more complicated over
recent years.
Causes range from then Chancellor
George Osborne’s creeping tax rises
to the further proposed property tax
reforms which are being floated ahead
of the current Chancellor’s Budget in
November, to the uncertainty of the
impact of the Renters’ Rights Bill. This
is likely to be given Royal Ascent very
soon and enacted next year.
As a business development manager
(BDM) for the Family, specialising
in lending to those BTL borrowers
underserved by the major lenders,
it is critical to know your subject
thoroughly and to educate brokers and
provide them with an understanding
of the options available to buy-to-let
landlords.
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The Intermediary | October 2025
We feel that the mutual sector
is beer placed and nimbler in
providing answers to brokers’ and
other intermediaries’ questions in
a growing, yet still niche sector.
Building strong and enduring
relationships with them is
fundamental to the BDM’s role.
There is, however, some
encouragement in the recent dip in
BTL mortgage interest rates which
are at their cheapest in three years.
According to Moneyfacts, on average
a 2-year fixed deal stands at 4.88%,
down from 6.64% in September 2022.
Change and adapt!
We at the Family and other mutuals
specialising in BTL feel that we are in
sync with the professional landlords
with big portfolios that have become
accustomed to needing to change and
adapt as costs have steadily increased
and regulation has become tougher.
But much depends on the long-term
goals of landlords as well.
Portfolio landlords rent out
properties as a living; they have
simply needed to get on with it and
consider different types of property
investment – namely houses in
NATHAN WALLER
is BDM at the Family
Building Society
multiple occupation (HMOs), a fastgrowing part of the market where
the yields are likely to be greater and
properties, inspected and licensed by
local authorities, are typically of a
much higher standard.
There is a noticeable trend as more
professional tenants look to rent
HMOs near where they work that are
practical and affordable, while they
save for a deposit for a mortgage on a
new home of their own.
Therefore, aer listening to
brokers, we recently amended our
loan criteria to offer up to 75% loan-
