BTL Portfolio Remortgage Now

BTL Portfolio Remortgage Now.

Many buy to let mortgages have been arranged on the basis of the rental income cover to fund mortgage payments. Some buy to let mortgage lenders do not assess your own ability to be able to afford to meet mortgage payments.

This is about to change with new rules starting on 1^st October.

The Prudential Regulatory Authority (the regulator for banking and part of the Bank of England) has lined up new affordability tests for landlords that have a range of mortgaged properties or indeed own properties via a ‘portfolio’ buy to let mortgage account.

This means that the squeeze is definitely on lenders to ensure that their clients can afford mortgage debt that they take on.

What this means?

Existing ‘buy to let’ mortgage lending will not be affected initially.

If you are planning to expand your property portfolio then you may be affected after the new affordability rules come in.

Existing ‘buy to let’ lending may be affected when the mortgage period ends or of you look to re-mortgage.

Comment

We expect ‘buy to let’ mortgage lending to become increasingly tighter as the Government puts the squeeze on landlords to release property onto the market for sale, as well protecting bankers and consumers from themselves with enforcing responsible lending practices.