Barclays Is First To Toughen Buy-To-Let Tests

Barclays has rushed to impose stricter affordability checks on aspiring buy-to-let landlords ahead of the Chancellor’s tax squeeze. In a bid to put the brakes on the booming buy-to-let market, the Government will impose swingeing cuts on the amount of tax relief landlords can claim on their mortgage interest payments, dramatically pushing up landlords’ tax bills. Barclays has responded to fears that buy-to-let mortgages will soon become unaffordable for many people, particularly when interest rates finally rise. To qualify for a new buy-to-let mortgage, its customers will have to prove their rental income covers at least 135 per cent of their monthly mortgage payments. This is an increase from the current level of 125 per cent – which is fairly typical for mortgage lenders. Read more on the Daily Mail website.