BoE may be given powers to cool the buy to let market in 2016.
Buy to let mortgage approval for small time investors is set to get tougher after this April, but things could prove even more difficult if the BoE is given more powers by the treasury to cool the market.
Including in the possible powers, could be a directive to require lenders to limit the availability of buy to let mortgages.
In addition, the required ratio of expected rental income to mortgage interest payments may also be increased. Some lenders such as Barclays have already adjusted their interest coverage ratios ahead of moves by the Bank
It is not the first time the Bank of England governor has voiced concerns over the growth of the buy to let sector.
If you want to avoid increased regulation and a stamp duty hike, act before it’s too late. To buy your first rental property or increase your existing portfolio of properties, call us at Deal Direct for mortgage advice.
We are a ‘whole of market’ broker regulated to offer mortgage advice. We are not financial advisers and cannot comment on the suitability of property of an investment. For that advice you will need to contact an independent financial adviser.
- Note not all buy to let deals are regulated by the FCA.
For mortgage advice and a quote,
call 0800 048 8828
