New buy-to-let regulations coming into force affecting landlords

There are new mortgage regulations coming into force from September 30th 2017. These will make it harder for landlords with four or more buy-to let properties to secure their mortgages.

The changes will involve greater scrutiny over incomings and outgoings. The exact nature of which is still to be stated. These changes are on top of more stringent rental calculations already brought in earlier this year.

 

Mortgage offers can be held for up to six months we are strongly advising clients to start their applications sooner.

 

On top of tighter lending Bank of England chief economist Andy Haldane has stated that leaving a rate hike until too late could lead to steeper rate rises in the future and that he may vote to raise interest rates in the second half of the year. This month three additional members out of the eight voted for an interest rate rise. A fixed rate could stop you being affected by this.

Call us today for help and advice with your mortgage.

Mortgage Lenders Now Keener Than Ever To Do Business Through Brokers

Mortgage Lenders

Mortgage Lenders now keener than ever to do business through brokers…..
And that can only be good for borrowers….

For some years now more mortgage lending has been arranged through brokers than direct with banks and building societies. While there are some smaller mortgage lenders that only take business brokers, there are some mainstream banks and building societies that receive more than 85% of their lending through the mortgage broker channel. Many lenders have consistently offered mortgage products exclusive to brokers so whilst this is nothing new it demonstrates further the importance of brokers to lenders and therefore to borrowers alike. So if this is all old news what’s new?

Buy To Let Changes From The Lenders

Buy To LetThere are some important changes to the Buy To Let lending criteria, since January 2017.

Since the 1st January 2017, mortgage lenders have increased the amount of rent required for a Buy To Let (BTL) Mortgage.  Previously, most banks would have lent £139,676 based on £800 pcm rent. The figure now for most banks is £120,376.  A fall of around 14% could affect lot’s of property owners for this year, trying to add value to their portfolio.

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