Ample RTI buy to let mortgages are disappearing.
The changes planned for January 2017 to buy to let mortgage underwriting, could spell the end of the ample Rent to Interest calculation for landlords.
Before approving a mortgage, lenders will be obliged to perform much tougher stress tests to make sure that would-be property owners can afford the repayments, particularly in times of void.
From January 2017 onwards, the industry standard will rise to at least 145% RTI at pay rate or 5.5%, when previously it has been 125% at 5%.
Some lenders have pre-empted the move and have already made the planned changes to their ranges. However, other lenders are waiting, which means there is still availability of the more generous RTI’s, although it is very limited.
By acting now and calling 0800 048 8828, one of our experienced mortgage experts could begin the process of sourcing the right buy to let mortgage for you right away.
Deal Direct are regulated to offer independent mortgage advice but not general financial advice. Therefore, if you wish to discuss the suitability of property as a viable investment, we urge you to contact an independent financial adviser.
Please note:
Buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
- applicants who are letting to buy
will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.
For free, impartial and ‘whole of market’ advice on the latest rate reductions, contact Deal Direct.
Don’t miss out. Speak to us today on 0800 048 8828.
