Simplified buy to let mortgage processes from OneSavings Bank.
Some landlords could hold the view that the buy to let mortgage market has become very challenging and difficult.
The new regulations phased in during 2017 have affected how mortgage applications are underwritten and landlords are being faced with producing much more paperwork to justify their income vs expenditure and borrowing needs.
However, OneSavings Bank has taken a step towards supporting landlords and simplified its interest coverage ratio requirements. The details are:
- individual applicant for standard buy to let property – 140% ICR
- individual applicant for specialist buy to let property – 160% ICR
- limited company for standard buy to let property – 125% ICR
- limited company for specialist buy to let property – 145% ICR
These changes could mean that landlords can borrow more if they need to. To find out if these changes can benefit you or whether a product from another lender would suit your purposes better, speak to us at Deal Direct.
We 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 a property as an investment, you will need to contact an independent financial adviser.
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.