One of the largest banks in India is set to enter the UK buy-to-let market by the end of next month, Mortgage Strategy has reported. The lender in question is Axis Bank, the third largest private sector bank in India, with its UK unit having a single branch in London that offers savings, insurance and investment services.
The lender intends to collaborate with a select number of specialist distributors in the buy-to-let sector. Axis plans to target professional landlords and the range will cover options designed for limited companies, houses in multiple occupation (HMOs) and ex-pats.
Andrew Ferguson, head of buy-to-let mortgages at Axis Bank UK, was cited as saying that the launch is scheduled for the end of March “and we are excited by the opportunity ahead. The specialist buy-to-let sector is a growing market that we believe we can serve well.” According to him, Axis will manage to provide competitive offerings under flexible criteria “that ensures an attractive proposition for brokers and landlords”.
Mortgage Strategy quoted David Whittaker, managing director at Mortgages for Business, as saying that the Indian lender is likely to be a mid-market lender oriented towards professional landlords that would value a more flexible approach. According to Whittaker the niche represents an underserved marketplace with “plenty of good business out there in the mid-market”.
The Indian lender plans to enter the real estate market ahead of reforms announced by the British government back in 2014, that are set to be introduced in April. The new legislation is likely to make buy-to-let a more attractive market in the near future. Under the new legislation Britons will no longer be obliged to buy an annuity at retirement with some brokers predicting that many over 55s will use their saving to invest in the buy-to-let sector.