Market update: December 2022
Published 21 December 2022. Market conditions, rates and lender criteria change over time, and this article is general information, not advice. For advice on your situation, speak to the team.
At the end of 2022, after a turbulent few months following the mini-budget, the market had settled. Lenders had withdrawn and repriced their products, and by December most were back to lending at full capacity.
Buy-to-let stress tests
Buy-to-let lenders check that the rent will cover the mortgage payments not just at today's rates but at higher potential rates, with a margin for void periods and costs. After the rate rises, lenders took different approaches to these stress tests, which made lower-yielding properties harder to place, especially in a personal name.
What were clients doing?
Many clients were favouring higher-yielding properties. Several lenders had also begun to ease their stress tests, a trend we expected to continue into 2023.
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