New legislation around buy-to-let mortgages is set to come into force on 1 October. Here’s everything landlords need to know to prepare for the changes.
From 1 October, landlords who own four or more properties will need to provide information on all the properties in their portfolio to lenders, even if the mortgage will only be for one of them.
The rules, which come from the Bank of England, are designed to target ‘portfolio landlords’, and will apply whether the properties are in your name or owned through a limited company.
Once lenders have your financial information, they will use it to decide whether you’re a good candidate for a loan. Some of the areas they’ll look at are:
These changes will likely mean loans take longer to be considered, as well as creating more admin work for landlords.
If you have fewer than four properties, or don’t need to take out a mortgage, then things will go on as they are.
For portfolio landlords who wish to buy a new property or remortgage existing properties, the rules will vary from lender to lender.
Here’s a list of information you’re likely to need:
Some lenders may ask for more than this, while others won’t need this much, so it’s worth checking with your particular lender what you need to provide in advance.
We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer
12 April 2017 • 3-minute read
This month, major new tax changes affecting buy-to-let landlords came into force. Top 4 considerations when buying a rental property Is…
6 April 2017 • 2-minute read
Today is the date that landlords have been dreading. April 6 2017, not only marks the beginning of a new tax year, but the time when new buy…
6th Floor99 Gresham StreetLondonEC2V 7NG
Sol House29 St Katherine's StreetNorthamptonNN1 2QZ
© Copyright 2020 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.