Two And Three-Bed Buy-To-Lets 'Will Become Unviable'

Two and three-bed buy-to-let properties will become more difficult to buy under lenders' plans to apply far tougher checks on landlords. Landlords with traditional 25pc deposits will be unable to buy property in 91pc of areas if all lenders go ahead with plans to increase the amount of rent which is required to cover their mortgage payments.  The analysis also suggests that more than half of landlords who bought three years ago with a 25pc deposit will be unable to remortgage under the new tougher conditions - forcing them to sell, pay down the debt or increase rents. Lenders have already tightened requirements for buy-to-let borrowers, motivated by the Bank of England's consultation in March, which made income checks more stringent. Read more on the Daily Telegraph website.