An outspoken mortgage chief has criticised other lenders for supplying buy to let products to “every Tom, Dick and Harry” since the credit crunch.
Lee Grandin, who runs Lend2Landlord, claims that what he calls Zombie lenders - those who have benefitted from central government lending stimulus - have “searched for easy business to turn a quick profit” by shunning professional landlords and instead supporting inexperienced borrowers.
”You would have expected as soon as the [recent buy to let] tax changes were announced lenders would have made an immediate decisive change - that is, banned high gearing on the Tom, Dick & Harry buy to let mortgages and announced corporate buy to let lending schemes. But no, they encouraged further borrowing to Tom, Dick and Harry” says Grandin.
“Do you think that one of my landlords with 300 plus properties became successful because he or she invested like a zombie? No, in every property he or she would have looked to add value whether that be by developing or refurbishing. Professional landlords often operate as developers and continually improve rental stock and indirectly help the real economy” says Grandin.