Buy to let investors with 4 or more properties in their
portfolio are starting to feel the impact of the change in regulations for
lending that came into force in September this year. I was speaking to
Tom James at Thomas Nicholas Financial Services, based in Melton Mowbray, to
find out what impact this has had for local investors.
He explained that previously lenders assessed a buy-to-let
mortgage applications based on the rental income and property value of the
property they are lending against. From 30 September 2017, any landlord who owns
four or more mortgaged buy-to-let properties will have to submit income and
mortgage details on all of them every time they re-finance one, or
purchase a new property.
This has hit investors looking to purchase another property
for their portfolio or looking to re-finance their properties. The criteria has
become much stricter than we have seen in the past so lenders are refusing to
remortgage a property that previously fit their criteria.
This is resulting in some landlords increasing the equity
they have in a property, considering selling their investment property and in
some cases deciding not to invest in additional properties. This is not good
news for tenants, who in Melton Mowbray are seeing rents continue to rise as
the stock of available rental property does not satisfy the high demand in the
area.
You can do something to minimise the impact of these changes.
It’s vital that a landlord with a portfolio of properties
regularly assess the rental levels to ensure they keep up with the current market
rates. Inspect the condition of your properties, it is vital they are
being kept in a good condition to ensure you receive the maximum return on your
investment and to minimise void periods.
If you would like to review your current portfolio
performance please contact me to arrange a no obligation meeting to assess the
current rent and property conditions.
You should also contact Tom and look at the lending you have
in place to ensure you are fully aware of what you should expect when you need
to renegotiate your borrowing.
Charlotte Baker
- Belvoir Lettings Melton Mowbray 01664 569700
Tom James - Whole of market, free of charge mortgage advice:
0330 1200324
