Property investors tipped to invest in HMOs
LendInvest has predicted that property investors will seek opportunities in houses in multiple occupation (HMOs) and quality stock after the stamp duty holiday ends.
The online lender said it has seen a record volume of applications in the lead up to the 31 March stamp duty holiday deadline, and it has added two legal firms onto its panel to support these queries.
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Beyond 31 March, LendInvest said savvy landlords can still purchase quality stock and will be learning from the events of 2020.
The lender predicted that property investors will seek multiple income streams and can do so by investing in HMOs and multi-unit freehold blocks.
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“Faced with potential rent deferrals, losing one or two tenants among six to 10 is easier to deal with than a single tenant sole occupying a flat or house,” LendInvest said in a blog on its website.
The platform said during 2020 the lender met increased demand with quick decision making by using APIs and open banking, and used its technology to regularly update customers.
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“Going forward, lenders need to continue improving the attention and information they give customers as we enter another busy year,” LendInvest said in the blog.
“Establishing ways to cope with increased volumes of applications was key too. As a business dedicated to using technology to aid the application process for the broker and borrower, it was all about fintech.
“APIs and open banking to smooth out the journey, speed up decision making and thus make the right lending decisions in a challenging environment where applications were encountering issues due to deferred mortgage payment schemes are the tools modern lenders should continue embracing into 2021.”
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