MEX stays cool about new lenders

New entrants in the buy-to-let market will not have a big impact and are not regarded as competitors, says Mortgage Express.

Gus Park, head of buy-to-let and equity release at MEX, says: “Entrants may make a big noise at first but in reality most of our competition comes from the usual suspects – firms that have been in the industry for years.”

Figures from Moneyfacts.co.uk show eight intermediary lenders and several direct lenders – most recently Alliance & Leicester – have entered the market of late.

Moneyfacts.co.uk also reveals that in terms of product numbers there has been a 75-fold increase over 10 years.

But Park says while the entrants might make a splash at first they won’t pose much of a threat to existing buy-to-let lenders.

He says “There’s a difference between offering buy-to-let products and being a buy-to-let lender. The new lenders will have no real impact.”

But Bill Dudgeon, managing director of new entrant DB Mortgages and former managing director of The Mortgage Business, says: “There’s definitely a place for new lenders in any market but they must show they have something different to offer.

“I don’t know how MEX can say new entrants won’t make a difference. Every lender is a new entrant at some point. Take TMB for example. It was new once and has gone on to be successful. MEX will have to wait and see.”