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.

https://www.landlords.org.uk/news-campaigns/news/bank-englands-attempts-cool-btl-market-having-desired-effect-say-landlords