Ahead of mortgage interest tax relief changes that are due to be implemented in April 2017, some lenders have already started to unveil new affordability criteria to ensure landlords don’t over expose themselves when taking out buy-to-let mortgages in the future.
The Mortgage Works, one of the biggest buy-to-let lenders in the UK market, will start demanding that a landlord’s rental coverage requirement be increased from 125% to 145%, whilst reducing the maximum loan to value from 80% yo 75% from 11 May 2016. Therefore anyone considering taking out a new loan, or remortgaging on an existing property, should speak to us as a matter of urgency.
The Times also reported today that moves to make it tougher to secure a loan on a buy-to-let property is; “the most concerted attempt yet to cool the housing market.”
To speak Steve Padgham about your property finance or mortgage requirements, or to find out how to go about securing the best low-rate deal currently on the market six months ahead of your current deal ending, please call him on 020 8614 4782, or e-mail email@example.com.