Tougher portfolio buy to let mortgage stress tests from September.
A number of lenders have recently announced changes to their portfolio buy to let mortgage lending criteria.
This has been prompted by the onset of new regulations being introduced by the Prudential Regulation Authority from 30th September this year. Consequently, lenders have already begun a review of their underwriting standards and have introduced tougher rules to test affordability. Skipton Building Society is one of these lenders.
SBS’s previous affordability test was 145% at 5.5% - or 5% if you were applying for a 5 year fixed rate. This has now changed to 150% at 5.5% and, as a landlord, you will be required to have a minimum income of no less than £45,000.
Additional documentation will also be required but, to date, the details haven’t yet been announced by the lender.
For further details about buy to let mortgages from this or other UK lenders, contact Deal Direct.
Deal Direct are regulated to offer independent mortgage advice; however, we are not regulated to offer general financial advice. If you want to discuss the suitability of property as an investment, you will need 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.
Call Deal Direct for buy to let mortgages on
0800 048 8828.
