This is fantastic news for the buy to let industry for two reasons. Firstly, of course, it’s always good to have new lenders to stir up competition. The buy to let market was, for many years, dominated by a handful of names. In recent years the likes of Fleet and Foundation Home Loans have caused quite a stir within the sector. And there is always space for new lenders if they are willing to rise to the competition and offer something extra for brokers and landlords.
Secondly, of course, a new entrant is a sign of confidence in a sector and the buy to let market could certainly do with a dose of this right now. The fact that a new lender, headed up by a very experienced industry player, is willing to take a punt on the market is a sign that there are still plenty of opportunities to be had within buy to let.
Landlords have had to endure an awful lot in recent years, not least the constant doomsday style reporting of some publications heralding the end of the buy to let market. The move by The Mortgage Lender is a most welcome one and I hope we see great things from the lender. But whether it is able to make a dent in market share or not, its decision to enter the market has already done some good.
