Furness Building Society Expands Buy-to-Let Lending Access: What London Landlords Need to Know

Furness Building Society’s Mortgage Transformation: A New Landscape for Landlords

Furness Building Society has officially launched the first phase of its mortgage transformation programme with significant updates to lending criteria affecting private landlords, particularly in London’s competitive buy-to-let (BTL) market. This initiative aims to broaden access to mortgage products for a wider range of borrowers, including those with complex income profiles, contractors, professionals starting new jobs, and limited company directors.

What Has Changed?

• Buy-to-Let Lending Available Up to 80% LTV: Previously, Furness operated more conservative LTV caps on buy-to-let products. The new 80% LTV threshold for regulated BTL mortgages means landlords can now borrow more against their properties, increasing leverage options.

• Complex Income Profiles Eligible for Up to 95% LTV Lending: Individuals with varied or irregular income streams—such as freelancers, contractors, or new self-employed business owners—can access higher LTV lending.

• Short-Term Lending at 75% LTV: For bridging or short-term finance, Furness offers up to 75% LTV, providing flexibility for landlords requiring quicker capital access.

• Holiday Let Mortgages Also Available up to 80% LTV: This is notable for landlords diversifying into holiday lets, a niche growing post-pandemic.

Why This Matters for London Landlords

London landlords face high property prices and competitive financing environments. Furness’s updated criteria provide several practical benefits:

• Improved Financing Options for Portfolio Growth: Higher LTVs can free up capital for acquiring additional properties or refurbishing existing ones.

• Inclusivity for Complex Income Borrowers: Landlords with income from multiple sources or limited company structures—common in London’s diverse economy—may find Furness a more accessible lender.

• Holiday Let Expansion Support: With London’s tourism rebound, the ability to finance holiday lets more easily can be a strategic advantage.

Practical Implications Across Landlord Profiles

• Single-Unit Landlords: May benefit from potentially lower deposit requirements, improving cash flow flexibility.

• HMO and Portfolio Landlords: Larger landlords using limited companies can leverage the expanded eligibility for directors and complex incomes to restructure or expand holdings.

• Accidental Landlords: Those who inherited or converted their properties may now access financing more easily, especially if income documentation is irregular.

Next Steps for Landlords

1. Review Furness’s Updated Lending Criteria: Visit the official Furness Building Society website or contact their mortgage advisors to obtain the full, current lending criteria documents.

2. Assess Tenant Financing Needs: If you have tenants or prospective tenants who might benefit from Furness’s flexible lending (e.g., contractors or self-employed professionals), inform your letting agents to help facilitate smoother tenancy arrangements.

3. Engage Mortgage Brokers or Financial Advisors: Discuss with your broker whether Furness’s products fit your refinancing or acquisition plans.

4. Monitor Further Developments: Furness has indicated additional phases in their transformation programme. Stay alert for updates that could affect lender accessibility and terms.

5. Verify All Information Through Official Channels: Before making financial decisions or advising tenants, confirm details directly with Furness to avoid misinformation.

Managing Compliance and Risk

Higher LTV lending increases leverage but also financial risk. Ensure your rent projections and tenant stability justify increased borrowing. Keep documentation thorough to meet Furness’s underwriting requirements, particularly regarding complex income verification.

How Rentals & Sales Can Support You

Our landlord intelligence hub offers tailored portfolio reviews to evaluate your current financing structure against these new lending options. We also provide compliance audits to ensure your properties meet regulatory standards, helping position your investments optimally for lender approval. Additionally, our pricing strategy consultations can help optimise rental income to support higher mortgage commitments.

Final Note

While Furness’s lending criteria updates are promising for many landlords, each situation is unique. Consult with financial advisors and review all lender communications carefully. Rentals & Sales is here to guide you through these changes with practical advice and expert support.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Landlords should seek professional advice before making mortgage or investment decisions.