Whether it was Brexit, the changes in stamp duty and interest rate relief, as well as the findings of the Prudential Regulation Authority consultation into buy-to-let (BTL) underwriting standards, these issues heavily impacted the investor community. When one considers all this, it’s impressive that both the short-term and term markets proved to be so successful for investors in 2016.

Here at Shawbrook Commercial Mortgages, we anticipate that this year will be just as exciting for us all.

We would like to thank our broker partners for their support throughout the historic industry changes we encountered during the previous 12 months. The intermediary channel has always been a vital resource which Shawbrook supports and, in a year where investors and landlords had to steer through unchartered territory, the benefits of using a qualified broker cannot be overstated.

•   Shawbrook warns brokers of BTL underwriting changes
•   Shawbrook to cut specialist BTL and commercial rates
•   Shawbrook completes residential loan in seven days

It’s important to recognise the many reasons to be positive as we look ahead to the next 12 months, with opportunities to grow for both intermediaries and investors alike. 

The new rules around affordability requirements – which have been in effect since the new year – will undoubtedly have a significant impact on landlords’ investment strategies moving forward.

A softening in BTL rates will help to cushion these adjustments and this should remain a compelling investment strategy, as well as one that is increasingly suited to the professional landlord. These changes put an onus on professional investors to grow their portfolios steadily with yield a primary concern. We may also see limited companies gearing more highly, further supporting a shift to corporate structures where there will be opportunities to raise higher levels of finance. 

Elsewhere, the underlying attractiveness of short-term finance options means that bridging-focused lenders continue to prosper in what is becoming a more crowded marketplace. The number of bridging products being introduced is also increasing, and this is a trend that will probably continue this year. 

With the above in mind, drawing upon the advice of specialist professionals such as a mortgage broker or financial adviser is a wise course of action for any investor this year, and a tactic which we at Shawbrook recommend. Building a long-term investment strategy that takes all of the above factors into consideration should be top of the list for investors and landlords as they navigate an ever-changing financial landscape.