Possible new controls for buy to let mortgage LTV ratios.

Buy to let mortgage loan to value ratios, could see some new controls introduced in the New Year. This is because the government are extending the powers of the Bank of England’s Financial Policy Committee.

What does this mean if you are a landlord, or thinking of becoming one?

What the controls will be exactly, are currently not clear, although, speculation points to landlords possibly needing to find bigger deposits. However, a bigger deposit usually means a better mortgage rate.

The government say the FPC’s involvement is to ensure the buy to let mortgage market continues to make a strong contribution to the economy. It is also concerned with supporting and protecting landlords as much as possible, which may be a welcome move.

This is the latest change to the buy to let mortgage market, but it does not mean an end to the availability of great offers. Deal Direct’s mortgage experts know precisely who to approach for the best offers overall, at the same time as securing the lowest rates.

To discuss your buy to let mortgage options, contact an adviser today.

Please be aware that whilst we are regulated to offer independent mortgage advice by the FCA, we are not regulated to offer independent financial advice. To discuss whether property is suitable as an investment, please contact an independent financial adviser for guidance.

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.

Call a Deal Direct adviser on 0800 048 8828.