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Should the new mortgage charter apply to BTL mortgage holders too?

Journalist: Callum Mason, i

ended 02. July 2023

The government's mortgage charter sets out standards large mortgage lenders will adopt when helping their regulated residential mortgage borrowers worried about higher rates.

This does not apply to buy-to-let holders and I wondered if the government should look to introduce help for these customers?

What will be the consequences if they do not? Could it mean smaller landlords having to sell properties and the BTL market becoming majority larger companies, rather than smaller landlords?

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Editor
Bob Singh
Founder at Chess Mortgages
The rushed nature of this life saving measure indicates that little thought was given to the matter. The meeting was between lenders and the Government and crucial stakeholders in the housing sectors were largely ignored or not even consulted.

The measures will benefit only a minority who have repayment mortgages. It left out those on interest only and those on BTL as if they’re immune from the effects of high interest rates. Landlords have been getting the cold shoulder from the Government since George Osborne instructed S.24

If the Government’s intention is indeed to drive out the small BTL landlord then it should say so. Turning the screws slowly is a torturous move.

It’s no secret large corporates are entering the sector eg Lloyds & John Lewis and trickle could turn up not a torrent quite quickly if the pilot schemes are successful.

Just as they did during Covid they could have done more ie allowed borrowers to suspend loan payments for up to 6 months ( ideally 12 )