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A client called us yesterday concerned about some social media posts regarding the negative impact the current situation could have on buy-to-let lending, asking for our opinion.
As of today, we haven’t had any lenders communicate to us that they are pulling back on their appetite for new lending, whether that is a purchase or a refinance
The situation today with banks, compared with the credit crunch, is that they are extremely well capitalised. Some Banks have 15 times more capital than they did during the credit crunch. They are constantly stress tested by the Bank of England to ensure they could survive another downturn, credit crunch, or some other major event like what we are seeing now.
The Bank of England stepped in last week to provide Banks with additional measures that amount to hundreds of billions of pounds of additional lending should they need it.
So, from our perspective, we are not concerned at the moment about lenders ability to provide funds to investors and developers. The High Street Banks and Challenger Banks such as Shawbrook are financially strong and with the additional support from the Bank of England are in a good position. We may see some of the non-banks or smaller lenders reduce their appetite.
However, if you use a good broker such as Advocate Finance, with access to over 100 hundred lenders, we are positive about finding a solution for any funding requirements.
Contact us now if would like to discuss your funding requirements.
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