UK lenders begin stress testing buy to let mortgages.
BM Solutions is the first lender to announce that it's starting to tighten its BTL criteria. It's introducing stress tests for mortgage applications of 65% LTV and above.
From March next year part of the BTL market will be regulated, and in preparation for this charge we are likely to see more and more lenders amend their loan criteria.
From 22 November, BTL loans from BM Solutions for 65% LTV and above will be subject to a notional stress rate of 5.49%. In addition applications for mortgages of under 65% LTV will be subject to a slightly lower stress rate of 4.99%. For 5 year fixed rate deals the stress rate used will be 4.99% regardless of the LTV.
With the risk that more lenders could soon follow suit, the advice is to act now and secure yourself a deal before stricter criteria is introduced market-wide.
If you are looking for a mortgage to purchase a rental property call us at Deal Direct. Our advisers are experts at finding competitive mortgages for investment landlords.
Please note:
- Not all buy to let mortgages are regulated by the FCA
- Deal Direct is regulated to offer mortgage advice, we are not financial advisers and are not regulated to offer property investment advice.
- To discuss the suitability of property as an investment call an independent financial adviser.
For impartial advice and a low rate quote,
call us on 0800 048 8828.
