Landbay posts record month despite buy-to-let clampdown

Digital mortgage lender Landbay has posted a record month of buy'‘to'‘let lending in September '“ a total of £6.31million '“ as the group said the government clampdown on the sector had 'played into its hands'.

A clampdown on buy-to-let seems to have failed. Picture: Getty

Landbay said yesterday that it had lent the money across 31 mortgages – higher than the two previous months combined.

The company added that the Prudential Regulation Authority’s new underwriting rules for so-called portfolio landlords had “caused a number of mainstream lenders to reconsider their commitment to the buy-to-let market in recent months, but it has played into the hand of specialist lenders like Landbay”.

The PRA’s new tougher rules came in at the start of this month, enforcing stricter lending regulations for landlords with four or more properties.

Landbay added: “The momentum of lending in September is expected to continue as portfolio landlords, and their brokers, look to specialist lenders to support them through the more restrictive lending environment.”

John Goodall, founder and group chief executive of the group, commented: “Over the past four years we have invested a lot of time and money into building a platform that we can be proud of.

“One that provides a competitive source of funding for professional landlords, a credible opportunity for investors, and is able to scale quickly to meet growing demand for specialist buy to let lending.”

Buy-to-let landlords were hit by Chancellor Philip Hammond last year with a 3 per cent Stamp Duty surcharge, while the amount of tax relief they can claim on mortgage costs has been cut back from April. The government was concerned of a “bubble” building in the sector.