'We're growing, we're evolving, and we want to help brokers and landlords succeed'
This article was produced in partnership with Family Building Society
Family Building Society has taken a strategic step forward in the buy-to-let (BTL) market by increasing its maximum loan-to-value (LTV). This move is part of the lender’s broader growth strategy, aligning with broader market trends and providing additional support to landlords in an uncertain — and challenging — environment.
Calling the move “a natural progression in our journey,” Paul Roberts, senior account director at Family Building Society, said upping the LTV to 75% from 70% only fortifies the lender’s already strong position.
“We’ve been growing for a number of years, and we plan to continue expanding,” he explained, noting that the increase excludes HMOs and MUFBs where the maximum LTV remains 70%.
“BTL, especially in the expat sector, is a significant part of our business. For expat landlords, having that additional 5% in lending power can make a meaningful difference, particularly today where affordability is under pressure.”
Balancing risk and opportunity
With rising interest rates, increased regulation, and the looming Renters' Rights Bill, landlords face a more complex landscape. Despite what he calls “a tricky market” due especially to the changes the Bill will bring, Roberts believes experienced landlords will remain in it, even seeing opportunities to expand their portfolios as some accidental landlords choose to exit. Portfolio landlords can leverage the extra 5% to refinance or release equity for further investments.
“Our increased LTV allows landlords to stretch their borrowing slightly further, giving them more flexibility when managing existing properties or looking to acquire new ones,” he said.
“For those looking to expand, this could be the extra support they need to secure the right deal.”
While many lenders have tightened affordability criteria in response to the volatility, Family Building Society’s decision to increase LTV demonstrates its confidence in the sector. While historically its risk appetite could be described as measured — “We assess each case on its individual merits, so our arrears levels have remained very low,” Roberts noted — after reviewing the current market, Family Building Society felt that now was the right time to take this step. Calling it a sensible adjustment to better support customers, it’s not increasing risk but creating space for opportunity, he said.
“The increase positions us more competitively within the specialist space, solidifying our standing as a lender that understands landlords’ needs,” Roberts explained. “Particularly for expats and specialist landlords, we look at it as another helping hand in a difficult time.”
To that end, Family Building Society also enhanced its limited company BTL offering, allowing lending up to 65% LTV without requiring personal guarantees. This makes it a more attractive option for landlords operating through limited companies, a structure that has grown in popularity due to tax benefits. The lender has also recently entered the small HMO (houses of multiple occupancy) market, offered through selected packagers for Limited Company BTLs.
“This is another step forward for us,” Roberts said. “There’s demand from experienced landlords looking to diversify into HMOs and we want to again offer that helping hand.”
In line with its mission to provide support, Family Building Society’s criteria is intentionally flexible. There’s no minimum income requirement or stress test on background properties held (only self-financing properties required), expat cases are accepted from over 40 countries, including more through agreed packagers, and the lender accepts applications up to the age of 89 — a major differentiator that extends the helping hand to a larger swath of borrowers.
Family Building Society is ready for business
With continued regulatory and economic shifts, brokers play a crucial role in guiding landlords through these changes. Roberts’ key message for brokers is to stay informed as to what’s happening in the market. Keeping up with the latest changes, whether it’s the Renters' Rights Bill or stress testing requirements, is essential for providing the best advice to clients.
He also encouraged brokers to engage directly with lenders, taking full advantage of BDMs deep expertise from product options with Family Building Society to highlighting other resources if its solutions aren’t the right fit. It will be those who stay informed and work closely with proactive lenders that are best positioned to help clients thrive.
“We’re growing, we’re evolving, and we want to help brokers and landlords succeed,” Robers said in summing up the lender’s position. “This LTV increase, our move into HMOs, our longstanding dedication to older borrowers via later life products, and our continued focus on specialist lending all reinforce that commitment.”
