Need a high LTV buy to let mortgage in 2016?

Would-be smaller deposit buy to let investors are being advised to act now, as any delay in making a purchase could mean after March it may prove tough to get a deal. 

Future changes to buy to let mortgage rules, will impose affordability checks which applicants will need to satisfy before they will be given an investment mortgage. Since the future implementation of tighter regulation was announced, some lenders have already tightened their criteria for new applicants. Those most at risk of being refused a mortgage are smaller deposit buyers.

Once market changes come into effect in April 2016, the high LTV end of the market could be impacted even more. For this reason, buyers wanting to make an investment in property before the changes apply, should act without delay.

By waiting you not only face higher stamp duty, you also face not being accepted by a lender if you fail the mortgage stress tests which are due to come in effect. Small scale investor not deriving their income solely from property will experience market regulation. They will be required to show they have the resources and income to pay for their buy to let deal during periods the property is left without a tenant.

The prediction is for property investment to become the domain of the rich or the professional landlord. In the future only those with a large income or a significant 50% deposit will find themselves able to buy.

If you plan to invest in property in 2016 and need a mortgage call us at Deal Direct.

We can advise you as to a suitable mortgage. However we are not regulated to offer financial advice, we cannot help you work out if property is the right investment for you. For that type of advice, you will need to contact an independent financial adviser.

Please note that not all buy to let mortgage products are regulated by the FCA.

Call us today on 0800 048 8828 for a buy to let deal.