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Mortgage changes for buy to let landlords
If you’re a landlord with four or more mortgaged properties, the new rules coming into force this month are likely to affect you.
From 1st October 2017, the Bank of England’s Prudential Regulation Authority, otherwise known as PRA, has introduced new criteria to all mortgage lenders which requires landlords to provide details of their entire portfolio. In short, landlords who are attempting to obtain a mortgage for a single property will now have their entire suite of properties assessed.
The new lending rules means that landlords must now provide all the necessary paperwork for each of their properties, which may include the following:
- Proof of property ownership, including all tenancy agreements and legal contracts.
- All financially relevant documents such as tax returns and proof of income.
- Relevant documentation to show any outstanding mortgage payments along with proof of regular rental income.
- Plans for any potential business strategies that may help provide insight into future profits and expenditures.
- Notes for any exit strategies or plans to sell or pass on the property in the future.
These changes have been brought into place to ensure that any investor looking to increase the size of their portfolio has liquidity in their other investments and to prove they are consistently able to finance their properties well.
It’s important that anyone who may be considering taking out a buy to let mortgage familiarises themselves with these rules, particularly those with a larger than average portfolio. It’s advisable to ensure all your property paperwork is up-to-date and on hand throughout the entire mortgage application process. Each lender may also have varying requirements so be aware of this when sourcing your relevant documents.
At Expedite Finance, our mortgage experts are best placed to help and advise you when it comes to any new or upcoming regulations in the financial market. With increased scrutiny on the performance of buy to let properties, it’s more important than ever to seek the advice of an experienced mortgage advisor. Our team can help you find the best mortgage deal on the market no matter what your business or personal situation. To find out more about our services, call today on 0800 2012 100.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Source: https://www.thetimes.co.uk/article/buy-to-let-rules-are-putting-the-squeeze-on-large-landlords-3w8lqf38d – On clicking this link you will leave the regulated site of Expedite Financial Services Ltd. Neither Expedite Financial Services Ltd, nor Sesame Ltd, is responsible for the accuracy of the information contained within the linked site.
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