rates-cut-graphicAs a result of regulatory recommendations, Nationwide, Barclays, TSB and Coventry Building Society have slashed the amount available to borrow by raising rental income requirements for BTL purchase and remortgage products.

More lenders are under pressure to follow suit.

Earlier this month the Daily Mail online surveyed 85 towns and cities across the UK finding that, “59 would not be accessible to landlords if tighter lending criteria is applied…”


What these changes could mean in practice

The below table shows the maximum amount you may be able to borrow against rent now and after the changes. Using average rent figures the changes would mean a loan reduction of £35,000 in Greater London, and nearly £19,000 in the rest of the UK.

Rent Current Max Loan Possible New  Loan
£500 £87,273 £75,235
£750 £130,909 £112,852
£1,000 £174,545 £150,470
£1,500 £261,818 £225,705
£2,000 £349,091 £300,940
GREATER LONDON AVERAGE (£1575)* £274,909 £239,991
REST OF UK AVERAGE (£773)* £134,924 £116,313

*Average rental values according to HomeLet – June 2016


How we can help you

There are a variety of methods Express Mortgages can use to try and help you through the jungle of buy to let mortgages, even when your product expiry is some way off. We review your full mortgage portfolio rather than looking at each mortgage individually.

Our advisers will give you specialist, expert and comprehensive advice. Call 01942 235000 or contact us to see how we can help you.