Friday, 23 March 2018

BtL Changes Make Mortgages Harder Say Landlords

Six months after the Bank of England’s (BoE) latest attempt to cool the buy to let market, almost two thirds of landlords (63%) who are aware of the changes say it is now harder to get a mortgage. The changes, which come from BoE’s Prudential Regulatory Authority (PRA), were introduced in two stages last year. A first stage in January 2017 required lenders to apply an interest cover ratio (ICR) of 5.5% to all products with terms of less than five years. The second stage, introduced in September 2017, requires portfolio landlords – like those with four or more buy to let mortgages – to undergo specialist underwriting processes when seeking new buy-to-let mortgages. Read more on the NLA website.

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