Open banking could help buy-to-let landlords

Contact Us


The January 13 introduction of open banking could be good news for landlords.

Open banking is being led by the Competition and Markets Authority (CMA) and aims to create more competition in banking. The first stage of the initiative involves the nine largest British banks, who will allow licenced competitors to access their customers’ data. More financial organisations will join the initiative later.

One outcome of this will be a new form of digital app where customers will be able to manage all their financial accounts in one place. The system relies on people consenting to share their financial data.

A Telegraph article from this month has noted that buy-to-let landlords will benefit as open banking should make it easier to fund property purchases. The commercial mortgage lending organisations will be able to interact with each other and mortgage brokers. This should make affordability testing easier as lenders will have access to details about borrowers’ current mortgages, credit cards and loans, thus speeding up the mortgage application process.

Another outcome of open banking could be the rise of online applications where portfolio landlords will be able to administer their whole property business. The applications will use data from the landlords’ bank, as well as their mortgage lender. Currently, landlords use either a spreadsheet or accounts software for this. An application that pulls in data from many sources could make the process simpler and quicker.

For mortgage brokers, open banking may make it easier to find and compare commercial mortgage offers.

Contact Us