This case study accurately summarises buy to let (BTL) mortgages are harder to come by with lending criteria much more complex since the start of the year. Here at Westminster Wealth we are a whole of market mortgage brokerage. We have access to all 15 main buy to let lenders plus additional niche lenders offering a wide range of competitive rates with different stress test rental calculations and affordability checks. I've heard it described as a minefield which is probably a fair reflection.
Arranging a buy to let mortgage can often be more complicated than arranging a residential mortgage so brokers really do add value when advising existing and new landlords.
Most types of buy to let mortgages are still not regulated by the Financial Conduct Authority. I have stated before I believe they should be to provide consumer protection parity with residential mortgages. Most good mortgage brokers have embraced the latest criteria changes resulting in the vast majority of BTL mortgages being arranged through this channel.
There are more changes to BTL lending later this year whereby if a landlord already has 4 or more mortgages the underwriting is even more complex and time consuming.
A reasonable broker fee for good professional advice and service is a price worth paying.
Your home may be repossessed if you do not keep up repayments on your mortgage. Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.
In January lenders introduced new criteria for buy-to-let mortgages, so whereas previously they required proof that the rent would cover 125 per cent of the actual mortgage interest payments, now they insist the rent must cover 145 per cent of the mortgage payments if interest rates increase to 5.5 per cent.