Understanding the new Buy to Let Rules
How will they affect you…
I’m sure you would agree there has been a lot of News about the new btl rules. Many of the Lenders in the marketplace have now released their approach to the new rules and not surprisingly they all have a slightly different way to meet these rules whilst remaining competitive with their products. We won’t try to cover all the changes but below we have highlighted the areas we think will be of interest to anyone thinking of buying a BTL property or existing owners thinking of raising money on their existing portfolios.
- 125% Rental Calculation available on selected products
- Limited Company SPV Schemes
- Consumer BTL based on rental calculation
- Personal Taxation Levels ignored
- Maximum Borrowing Calculators
- Portfolio Lending
- First Time Landlords
- No Maximum Age
There will be lots of questions over the coming weeks about these new rules.
But don’t worry, that’s what we are here for, to answer your questions and help you place your cases.
So, rather than fret over all these changes you just need to remember one number 01305 776311
CALL US TODAY and let us take the strain out of placing your Buy To Let purchases
Struggling with affordability
We can help increase your chances of achieving their dream.
- Ignore dependents when calculating affordability
- Retained profit considered
- Self-employed only trading for 1 year
- Asset rich, money poor clients considered
- Self-employed for 2 years trading and projections considered
- State benefits considered
We have lenders that manually underwrite with a common sense approach
Did you know… under the old calculations £900 PCM rent on market leading BTL rate would have given borrowing power of over £262,000.
Under the new rules, this would reduce to £135,000. That’s almost a 50% reduction in the amount of borrowing!
- New rental calculations will be changing from 125% at pay rate to 145% at a 5.5% charge rate
- Many lenders have already changed their calculations to reflect these changes
- Have you considered LTD Company options for your Landlord Clients?
- We still have lenders offering 125% rental calculation pay rate
- Is Consumer BTL an option for you?
CALL Mortgage Solutions ON 01305 776311 TO DISCUSS YOUR ENQUIRIES NOW