Possible cap on loans to BTL landlords

September 28, 2015

At present owner-occupiers are treated differently to would be landlords applying for loans, the Bank of England at present has powers to cap borrowing by owner-occupiers where it does not for landlords.

Officials are watching closely for lenders who are being too accommodating for would be landlords when it comes to satisfying criteria when applying for loans,  the booming buy-to-let market is distorting the property market at present and The Bank of England (BOE) warns it could put the UK banking system at risk.

According to data from the BOE  buy-to-let lending has icreased by 40% since 2008, where as owner occupier lending rose by only 2%. Further changes to the buy-to let as we have seen with tax changes to landlords and the continuous flow  of new regulations that need to be met may see the exodus of landlords from the market, added to that a decrease in new landlords entering the market because of mortgage lending changes could see a dramatic reversal in house prices.

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Breaking News

First-time buyers get more market town for their money in the Midlands

Leek, West Midlands is the most affordable market town for first-time buyers, at an average £191,359 Immingham, Yorkshire and the Humber most affordable for all buyers, at £176,918 Overall, average house price in market towns now £363,456, up 5% in the last year and 24% in the last five years First-time buyers paying an average…
Read More →
Breaking News

Placemaking around rail is a winning blueprint

The Government has announced that around 40,000 new, high-quality homes will be built on surplus railway land, as the Transport Secretary, Heidi Alexander, unlocks brownfield sites across the country for development. Richard Beresford Chief Executive of the National Federation of Builders (NFB), said: “The Government has a chance to set a new standard in placemaking…
Read More →
Rightmove logo
Breaking News

Rightmove: Average two-year and five-year fixed mortgage rates now level

Rightmove’s daily mortgage tracker shows that the current average two-year fixed mortgage rate is currently level with the average five-year fixed mortgage rate.   Both the average two-year fixed rate, and five-year fixed rate are currently 4.52% Prior to July 2025, the last time this was the case was in September 2022 before the mini-Budget…
Read More →
Breaking News

UK Homemovers Relocating Over 50 Miles

UK Homemovers Now Relocating Over 50 Miles as Buyers Seek Better Value Beyond the City The latest research by GetAgent Exchange, a platform enabling estate agents to monetise out-of-area applicant leads, has found that UK long-distance movers are now relocating an average of 52 miles from their original location, rising to over 80 miles in…
Read More →
Breaking News

Beach hut values soar by as much as 100%

The latest research from over-50s property specialists, Regency Living, reveals that it’s not just demand for bricks and mortar that is pushing up house prices in Britain’s most desirable coastal locations, with the average price of a beach hut soaring by as much as 100% in some seaside towns. High cost of coastal homes England’s…
Read More →
Breaking News

Revealed: the most lucrative shared living postcodes

New research from COHO, the HMO management platform, reveals that the shared living market in England & Wales generates an estimated monthly rental income of £1.4bn. But which postcode areas are creating the most income from shared living? How much are HMOs making in your postcode? Find out here COHO has analysed the estimated number…
Read More →