logo

Selling

Lenders begin to announce buy to Let changes

Posted on: Thursday, January 19, 2017


Lenders begin to announce buy to Let changes

Lenders have started to announce changes to their buy-to-let policies following the Prudential Regulation Authority’s decision to phase in new stricter rules.

The PRA said in September that lenders must take the borrower’s income and personal circumstances into account as well as rental income when assessing buy-to-let mortgage applications.

Lenders must also apply a ‘stress test’ of a minimum interest rate of 5.5%, unless the mortgage rate is fixed for 5 years or more.

These requirements don’t come into effect until January next year, but some lenders have already announced changes to the way they underwrite buy-to-let mortgages.

Santander was the first major lender to confirm their changes, and will tighten the rental calculation from 23rd November. 

The bank currently requires landlords to receive 125% of their mortgage liabilities in rental income. This will change to 145%.

At the moment Santander applies a stress rate of 5% for some deals with a 60% loan to value, or 5.50% above that, but this will change to 5.50% for all borrowers.

Other lenders are expected to announce changes in the coming weeks. 

Blog

Sell your home this autumn

Friday, September 6, 2024

If you’re considering selling this season, autumn brings in a golden opportunity to charm...

Read More

How to prepare your home for viewings this summer

Wednesday, July 17, 2024

Summer lends itself perfectly to property viewings and to preparing your home. Here’s how...

Read More

How to know when it’s time to sell your home

Friday, May 31, 2024

Whenever you decide to sell your home, you need to make sure you and your property are ready....

Read More

Read What Our
Customers Say

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the selling process a pleasure. 

"

Having recently Sold my house with Philip Martin Estate Agents I cannot praise the whole experience enough. From the first telephone conversation to the last it has been impressive. Professional, Polite, Guiding, Encouraging. I do need to mention Jack Loader, no question or query was too much trouble, making the Selling process a pleasure. Totally stress free.

"

James and his team handled a complex sale (house and adjacent land owned by a third party) with great professionalism and innovation and determination to secure our sale. He was also cognisant of our time scales in that we had not secured an onward purchase or rental property. James is an extremely approachable agent who always worked with us to successfully achieve our goals and certainly went ‘the extra mile’ when required. We cannot recommend him highly enough.

"

"We were so pleased with all the correspondence with Phillip Martin and you all certainly delivered a very professional and friendly service. We would particularly like to thank you for all your personal correspondence with Mrs. Dianne Jones. It went above and beyond and we are truly grateful.  As I mentioned before we have only ever bought two houses and they were both through Phillip Martin. We will certainly use you guys in the future!"

"

Very efficient and personable service helped us find a perfect place. Trustworthy and effective. Thank you.

"

Dear Jack, I have moved into my new bungalow and it is very nice. I just wanted to take this opportunity to thank you for all of your efforts on my behalf. You have behaved rapidly and helpfully to assist me with all of the problems that arose for me in one of several difficult projects at once. Thank you very much.

How Much is Your Property Worth?

How Much is Your Property Worth?

To find out how much your property is worth in the current market, get in touch with us today!

Book a Valuation