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Buy-to-let DOOM

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    Buy-to-let DOOM

    Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

    One of the largest buy-to-let mortgage providers has drastically restricted its lending in a move which experts say will be copied by others, and which will make it impossible for some landlords to borrow. (AtW's comment - just in time for BTL people to try to shift properties to Ltds)

    Nationwide Building Society, the second biggest buy-to-let lender after Lloyds Banking Group, will require landlords to receive far more rental income relative to the costs of their mortgage than is currently the case. The change will apply from May 11.

    Other lenders are expected to follow suit in a "domino effect" which could mean some landlords will not be able to obtain mortgages at all, brokers said.

    Those worst affected are likely to be landlords in lower-yielding areas such as London and the South East.

    The changes are in response to the Bank of England's announcement last month that lenders would face tougher rules when calculating mortgages for buy-to-let landlords.

    Experts predicted that investors will need at least a 40pc deposit when buying property as a result of these tougher rules.

    The Mortgage Works, the buy-to-let division of Nationwide, has tightened its "rental cover requirement", which is the amount a landlord needs to take in rent compared to the cost of the mortgage repayments. The ratio will go from 125pc to 145pc.

    Source: Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

    Looks like I've called the top of the market correctly ...

    #2
    TL;DR

    Just tell us what it means to MF

    Comment


      #3
      Originally posted by AtW View Post
      Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

      One of the largest buy-to-let mortgage providers has drastically restricted its lending in a move which experts say will be copied by others, and which will make it impossible for some landlords to borrow. (AtW's comment - just in time for BTL people to try to shift properties to Ltds)

      Nationwide Building Society, the second biggest buy-to-let lender after Lloyds Banking Group, will require landlords to receive far more rental income relative to the costs of their mortgage than is currently the case. The change will apply from May 11.

      Other lenders are expected to follow suit in a "domino effect" which could mean some landlords will not be able to obtain mortgages at all, brokers said.

      Those worst affected are likely to be landlords in lower-yielding areas such as London and the South East.

      The changes are in response to the Bank of England's announcement last month that lenders would face tougher rules when calculating mortgages for buy-to-let landlords.

      Experts predicted that investors will need at least a 40pc deposit when buying property as a result of these tougher rules.

      The Mortgage Works, the buy-to-let division of Nationwide, has tightened its "rental cover requirement", which is the amount a landlord needs to take in rent compared to the cost of the mortgage repayments. The ratio will go from 125pc to 145pc.

      Source: Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

      Looks like I've called the top of the market correctly ...
      nothing that was not expected .

      The Witch hunt has begun

      Comment


        #4
        Originally posted by AtW View Post
        Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

        One of the largest buy-to-let mortgage providers has drastically restricted its lending in a move which experts say will be copied by others, and which will make it impossible for some landlords to borrow. (AtW's comment - just in time for BTL people to try to shift properties to Ltds)

        Nationwide Building Society, the second biggest buy-to-let lender after Lloyds Banking Group, will require landlords to receive far more rental income relative to the costs of their mortgage than is currently the case. The change will apply from May 11.

        Other lenders are expected to follow suit in a "domino effect" which could mean some landlords will not be able to obtain mortgages at all, brokers said.

        Those worst affected are likely to be landlords in lower-yielding areas such as London and the South East.

        The changes are in response to the Bank of England's announcement last month that lenders would face tougher rules when calculating mortgages for buy-to-let landlords.

        Experts predicted that investors will need at least a 40pc deposit when buying property as a result of these tougher rules.

        The Mortgage Works, the buy-to-let division of Nationwide, has tightened its "rental cover requirement", which is the amount a landlord needs to take in rent compared to the cost of the mortgage repayments. The ratio will go from 125pc to 145pc.

        Source: Buy-to-let investors face mortgage crisis as lenders introduce 'brutal' criteria

        Looks like I've called the top of the market correctly ...
        Never mind, when prices fall, MM will be rent out his house and buy another
        Seriously though this is going to shaft tenants. Well done George the cretin.
        Now I need to see if there's a buying oppo here
        Last edited by sasguru; 29 April 2016, 16:27.
        Hard Brexit now!
        #prayfornodeal

        Comment


          #5
          Originally posted by sasguru View Post
          Never mind, when prices fall, MM will be rent out his house and buy another
          You mean MF?

          Comment


            #6
            oh dear I see rents rising.....
            Always forgive your enemies; nothing annoys them so much.

            Comment


              #7
              Originally posted by vetran View Post
              oh dear I see rents rising.....
              Big time...

              Comment


                #8
                Originally posted by vetran View Post
                oh dear I see rents rising.....

                i see for sale boards rising

                Comment


                  #9
                  Originally posted by unemployed View Post
                  i see for sale boards rising
                  well the renters won't be able to afford them so will probably be bought by people with free cash.
                  Always forgive your enemies; nothing annoys them so much.

                  Comment


                    #10
                    Originally posted by sasguru View Post
                    Never mind, when prices fall, MM will be rent out his house and buy another
                    That's exactly right. [emoji41]
                    http://www.cih.org/news-article/disp...housing_market

                    Comment

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