Crystal Mortgages slams banks over buy-to-lets

INDEPENDENT commercial financer Crystal Mortgages has criticised an over-reliance on automated applications answer systems by the high street banks.

The Walsall firm said the stringent conditions being laid down by the banks were leading to a stalling in the property market.

Roger Dewsbery, senior underwriter at the firm, said: “High street banks have become hugely over-reliant on automated answering systems, and not only is the criteria so stringent that most applications are declined on the spot, there is no room for appeal.

“We know there are thousands upon thousands of good buy-to-let owners who are being restrained financially.”

Crystal is now making a more on the banks’ territory and has entered the buy-to-let market. It has introduced more than 100 products and is targeting the £25,000 to £10m loans market.

The portfolio includes refinancing, purchasing or capital raising options, and the firm said it would make these available to first-time landlords, multiple property owners and limited companies.  It is also considering start-up, self-certification and adverse credit applications.

“The buy-to-let market is booming and we want to assist where we possibly can,” added Mr Dewsbery.

Crystal Mortgages recently reported a record start to 2011, with the business issuing terms on over £69m worth of business and completions up 86% from January to March.

The figures, which compare against the same period in 2010, show new business levels increased by 56% with commission paid out to introducers up by 60%.