Additionally, many younger people are looking to diversify their investment portfolios. Property is often seen as a relatively stable asset class, attracting not only first-time investors but also accidental landlords (who opt to let their property instead of selling or living in it). This mix of motivated and accidental landlords has contributed to a notable increase in young property investors over the past few years.
Despite this growing demand from new borrower profiles, high street banks are still very limited in their appetite for buy-to-let lending, mainly opting to lend on simple property types and to the traditional buy-to-let landlord. Many of them only lend to individuals and are highly reluctant to lend to accidental landlords.
Specialist lenders, meanwhile, have gradually been adapting to these shifts. More lenders are now offering tailored products for SPVs and first-time landlords, recognising that younger investors and limited companies require different approaches compared with traditional buy-to-let borrowers. However, product choice and guidance can still be limited, meaning investors face hurdles when trying to secure finance for their property investments in the modern lending landscape.
At West One, our flexibility and expertise means we are willing to lend to first-time buyers, first-time landlords (incl. CBTL) and new limited companies. Our most recent innovation in the buy-to-let space is Day-1 remortgages where clear value has been added to the property since purchase, with many more innovations coming soon.
For more information, contact Paul Huxter, Head of Intermediary Sales & Distribution at West One loans by emailing Paul.Huxter@westoneloans.co.uk or calling 0203 927 0022