Lenders begin to announce buy to Let changes - Lenders begin to announce buy to Let changes Book a Property Valuation
Selling February 14, 2017
     

Lenders begin to announce buy to Let changes

Lenders have started to announce changes to their buy-to-let policies following the Prudential Regulation Authority’s decision to phase in new stricter rules.

The PRA said in September that lenders must take the borrower’s income and personal circumstances into account as well as rental income when assessing buy-to-let mortgage applications.

Lenders must also apply a ‘stress test’ of a minimum interest rate of 5.5%, unless the mortgage rate is fixed for 5 years or more.

These requirements don’t come into effect until January next year, but some lenders have already announced changes to the way they underwrite buy-to-let mortgages.

Santander was the first major lender to confirm their changes, and will tighten the rental calculation from 23rd November. 

The bank currently requires landlords to receive 125% of their mortgage liabilities in rental income. This will change to 145%.

At the moment Santander applies a stress rate of 5% for some deals with a 60% loan to value, or 5.50% above that, but this will change to 5.50% for all borrowers.

Other lenders are expected to announce changes in the coming weeks. 

Top tips to attract buyers this spring

Selling a home with a short lease

Why winter is a good time to move home

Prepare your home to sell in 2024

Contact us

    Puckeridge: 28 High Street, Puckeridge, Hertfordshire SG11 1RN
    t: 01920 822999  •  e: puckeridge@oliverminton.com



    Stanstead Abbotts: 14 High Street, Stanstead Abbotts, Hertfordshire SG12 8AB
    t: 01920 412600  •  e: sales@oliverminton.com



     Roydon: 20 High Street, Roydon Essex  CM19 5HJ
     t: 01279 888212  •  e: sales@oliverminton.com



© Oliver Minton Estate Agents 2017. All rights reserved.   Terms and Conditions | Privacy Policy | Cookie Policy
Oliver Minton Estate Agents Ltd.   Registered in England & Wales.   Company No: 06475871.
Registered Office Address: 14 High Street, Stanstead Abbotts, Herts SG12 8AB    VAT Registration No: 740725248







Built by