Lenders reveal buy to let mortgage underwriting changes.
A selection of lenders, including Coventry for Intermediaries, have recently unveiled their plans to change how they underwrite buy to let mortgage applications for portfolio landlords from this September.
The changes Coventry have announced include the following stipulations:
maximums:
- max LTV of 65% across the entire portfolio
- max of 3 properties bought in previous 12 months
- max 5.5% for stress-testing affordability
minimums:
- min ICR of 125%
- been a landlord since September 2015 or before
These requirements are in addition to other information to be submitted such as itemization of all property values in the portfolio, monthly rental amounts, mortgage values and monthly repayments.
Comprehensive details on these new underwriting standards, as well as those being introduced by other lenders, are available from the Deal Direct team.
Deal Direct are regulated to offer independent mortgage advice; however, we are not regulated to offer general financial advice. If you want to discuss the suitability of property as an investment, you will need to contact an independent financial adviser.
Please note that buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
- applicants who are letting to buy
will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.