Godiva tightens higher LTV buy to let mortgage criteria.
A major buy to let lender has announced that it’s tightening its buy to let mortgage criteria for higher LTV products. Smaller deposit investors will be impacted, which will make it difficult for many would-be landlords to qualify for a mortgage.
Already we have seen Barclays introduce changes to the key ratio between rental income and monthly mortgage repayments. This means existing landlords may have to raise rents and would-be landlords will have to borrow less.
Following on from Barclays is Godiva, the Coventry’s buy to let mortgage arm. The lender has announced that landlords will now be required to have a rental income of 125% of monthly mortgage interest at 5%. From January 8th smaller deposit buyers with less than 35% to put down against a purchase, will be assessed based on mortgage interest at 5.5%.
If you are looking for a buy to let, predictions are for many more lenders to tighten their criteria over the coming months. For this reason, it is recommended that investors act now and get themselves a deal while they still can.
If you would like buy to let mortgage advice and a ‘whole of market’ mortgage, review call us at Deal Direct on 0800 048 8828.
Note:
- Deal Direct are not regulated to advise on the suitability of property as an investment. For that kind of financial advice, you will need to call an IFA.
- Not all BTL mortgages are regulated by the FCA.
For a completive BTL quote call us on 0800 048 8828.
