To find a buy to let mortgage you need to consult with an experienced broker. Recent changes have made it very complicated and there is more change to come. There is a good chance that as of October 2017, anyone with more than 4 houses will start to find it very difficult to get mortgages to increase their portfolios.
Property Expert Series: Richard Ignatowicz From Mortgage Savers
- Part 1: Introducing Richard Ignatowicz From Mortgage Savers
- Part 2: An Introduction To Specialist Mortgages for Property Investors
- Part 3: What Is Section 24 And What Does It Mean For Buy-To-Let?
- Part 4: Do Landlords Need To Set Up A Buy To Let Limited Company?
- Part 5: What Is A Special Purpose Vehicle (SPV)?
- Part 6: How Should Landlords Go About Finding The Best Buy To Let Mortgage?
- Part 7: What Kind Of Property Deals Should Investors Be Looking At?
- Part 8: What Does The Mortgage Market Look Like In 2017?
Finding The Best Buy-To-Let Mortgage
Amy: What is the best way for investors to compare buy to let mortgages? So, if people want to invest in property and they have the credentials are ready to get started, what's the best way for them to find the best product?
Richard: Due to the fact that new regulations are now making the marketplace much more complicated, I would strongly suggest that anyone wanting to invest in property contacts a broker, like ourselves, that is knowledgeable about buy-to-let. So, when you do contact your broker or financial adviser, it's critical that you ask them about their area of expertise.
Changes In The Buy To Let Mortgage Market
Richard: From October the 1st, 2017, further new regulations are going to come into play where investors who have four or more buy to let properties will now have even stricter underwriting criteria.
So, lenders will be asking for things like cash flow, asset liability statements, business plans...
They'll be looking more in depth at your existing portfolio and your bank statements. If you've got any maintenance bills and repairs they will want to see sufficient funds in the bank accounts to cover these items.
And, it's rumoured that a lot of lenders will not go into that marketplace where they service landlords with have four or more buy to lets.
If you are in this category you could be regarded as a portfolio or professional landlord. It is more likely that the typical mainstream lenders will stick with investors who have four or fewer properties, but only time will tell.
Amy: That's really interesting to know and I'm sure that will be interesting for people watching. change. Thanks again.
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