The Buy to Let mortgage market has changed beyond recognition over the last few years. Previously, all that was generally needed was a good credit history, a minimum of 20% deposit and a rental income or proposed rental income which was 125% of the new mortgage payment.
As a result of increased government intervention, the market is now very different.
Rental cover calculations (the proportion by which the rent covers mortgage interest) have become much more complex and can differ dramatically both between lenders and even within individual lenders for different fixed rate terms. For example, those borrowing on a fixed rate of 5 years or more can often now borrow more than those clients choosing a 2 year fixed rate.
Borrowers finances are also now scrutinised with consideration given to the following;
- Salary or self-employed income
- Personal borrowing levels
- Residential mortgage balance and payment
- Review of other buy to let borrowings
- Overall reliance on total rental income received
- Individual or limited company application
Expert mortgage advice is now key. We have helped many Buy to Let investors and would of course be delighted to help you. Commercial Buy to Let mortgages are not regulated by the Financial Conduct Authority.