The State Bank of India plans to launch a range of buy-to-let and residential mortgages in the UK next year.India’s largest bank launched into the UK mortgage market last week with a buy-to-let product. It is only offering it direct through its UK branches, but a spokesman says it will start to distribute through IFA’s at a later date.
The lender, which also has Financial Services Authority permission to offer regulated mortgages, plans to launch residential products in 2012.
Speaking about its buy-to-let deal, a spokeswoman for SBI says: “Distribution will be via SBI’s UK branch network and we will add IFAs and brokers to our network in the second phase next year."
The Indian bank already offers savings accounts and investment products in the UK.
It is interesting that new lenders are sizing up the UK housing market. It is 3 1/2 years now since the housing market peaked, prices have fallen and seem to be declining further. However rental yields are high and as the banks lend more money the market should bottom out.
Experienced property owners with large buy to let portfolio’s are actively buying in this market, new lenders are becoming interested, and the housing market does appear to be bouncing along the bottom.
Feels like a good time for a well thought through purchase!
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