Landlords and the Buy-to-let market could be forgiven for feeling hard done by in recent years.
The buy-to-let market has been on the receiving end of some tough love when it comes to both tax and lending criteria during the last 24 months. This, coupled with the new Prudential Regulation Authority (PRA) lending rules, may in many instances see some landlords throwing in the rental market towel.
And with some two thirds of landlords claiming that it is now harder to secure buy-to-let finance on a property – it would seem that much of this anecdotal discussion has become more than just hearsay.
This has happened because of PRA changes that have applied increased rigour on all buy-to-let mortgages, with tougher stress tests that may heavily reduce the amount that can be borrowed compared to what might have been available before the changes.
This, along with the application of a specialist underwriting process that includes affordability tests and business plans and suddenly, landlords and their entire portfolio are under scrutiny! The National Landlords Association reports that the changes have led over 63% of landlords to believe that it is now more difficult to obtain a new buy-to-let mortgage.
These added checks have slowed down the process of obtaining a buy-to-let mortgage. In a competitive market, where time is of the essence, this may easily result in a landlord losing a property and, as a result, future income!
It would be foolish for us to write that obtaining a buy-to-let mortgage is a breeze when it clearly has become more difficult. And this is why, here at Mortgage Search Go, we urge landlords and investors to make use of the services of an independent mortgage broker. The process of obtaining a buy-to-let mortgage has become increasingly time consuming and the hoops through which borrowers must jump are shrinking. Save your time! Let a reputable whole-of-market mortgage advisor like Mortgage Search Go do the hard work for you. When it comes to buy-to-let tough love, we’ll fight your corner!
Call us on 0844 69 333 60 or click here to contact one of the Mortgage Search Go team for more details.
Most Buy-to-let mortgages are not regulated by the Financial Conduct Authority. Continuous letting is not guaranteed, and rental income may not cover the mortgage payments. Your property may be repossessed if you do not keep up the repayments on your mortgage.