Nationwide building society is tightening up its criteria
for lending to buy-to-let landlords ahead of changes to how much tax relief
they will be allowed to claim against their repayments. Landlords who take new
loans from the society’s specialist arm The Mortgage Works (TMW) will only be
able to borrow up to 75% of a property’s value, instead of the current 80%, and
will have to prove that their rental income is at least 145% of their monthly
mortgage payments. Currently the figure is 125%, in line with most other
lenders. The changes come ahead of new rules on mortgage interest relief for
landlords, which will begin to take effect in April 2017, and as the Bank of
England attempts to rein in buy-to-let lending. Read more on the Guardian
website.
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