Lenders tighten BTL lending criteria
Coventry building society are now the most recent lender to tighten their BTL (buy-to-let) lending criteria ahead of a rules change being brought in by the PRA (Prudential Regulation Authority).
From the 14th September, applicants who own four or more properties, or are in the process of buying a fourth will now only be offered a maximum of 65% loan to value ratio with a minimum income coverage ratio of 125% against the national stress test rate of 5.5% across their entire portfolio.
Other requirements include a period of more than 2 years between the requested purchase and when they acquired their first BTL investment and not purchasing more than three BTL properties within the past 12 months.
Borrowers must also demonstrate they are not over-exposed to risk with lenders now being required to consider a portfolio as a whole. This means that applicants will be required to:
– Give information on their property investment experience
– Provide all details on other mortgages
– Reveal assets, liabilities, including tax
– Provide details of all historical and future cash flow from the portfolio
– Provide information on all forms of income
Coventry Building Society is the most recent lender after Accord Buy To Let and Paragon. All lenders must have the new standards implemented by the 30th September.
Employee of the month – March 2021
8th April 2021
Congratulations to Niaomi, our employee of the month for March! Niaomi is a friendly and efficient member of the team. She…
New build constructions
8th April 2021
Private new home construction-starts across England rose 17% year on year in the final quarter of 2020, completions are up…
Spring property market update
8th April 2021
As we enter spring, the average UK house price is £232,134, up 6% on March 2020. Transactions are 49% higher…
