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The Bank of India is planning to expand into the UK buy to let market by targeting landlords who hold their portfolios in limited companies. The bank says they can help out landlords by assessing each application on an individual basis, unlike other mortgage lenders who adopt a cookie cutter approach.
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Challenger Bank
The bank currently has twelve branches, which mostly sell mortgages and savings accounts via brokers. It first moved into the UK market earlier this year, beginning with some niche products for landlords with more complex business requirements. This initial foray was successful and lending has grown in the last few months. Because of its success, the Bank of India is now planning to increase its lending to landlords with limited companies.
“When we started offering limited company buy-to-let mortgages it was a niche product – it’s been fortuitous that we have found ourselves in a good position to help serve the growing demand from landlords who now need to use this type of arrangement,” says Sanjiv Chadha in the Daily Mail.
Bank Targets High Yield Areas
The bank is concentrating on targeting landlords in areas where rental yields are higher. These include the North of England and the Midlands rather than London. Their aim is to help landlords who view their buy to let portfolios as a business rather than a part-time hobby.
Landlords can borrow between £50k and £3 million from the Bank of India, which should help many of the landlords who plan to incorporate in the next year.
