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

Love or Hate Rightmove
Breaking News

Rightmove asks government to consider retaining first-time buyer stamp duty threshold

New analysis shows only 37% of homes for sale will be eligible for first-time buyer stamp duty relief in England come next April, down from 58% of homes that are currently eligible Currently, a first-time buyer pays no stamp duty on properties up to £425,000, but this is due to drop back to £300,000 from…
Read More →
Estate Agent Talk

5 Steps to Becoming the Best Estate Agent in Your Town

Are you passionate about your estate agency and want to become the most noted estate agency in your local area? Finding a family their dream home can feel like the greatest accomplishment, and can be extremely rewarding. In order to become the best estate agent in town, here are some top tips for success. 1.…
Read More →
Breaking News

Breaking Property News – 25/07/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Latest property data trust framework helps digitise conveyancing The Open Property Data Association (OPDA) has released the newest version of its property data trust framework which, among other benefits, will help key conveyancing information to be provided digitally. It will be easier for consumers to…
Read More →
Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker

Matt Smith, Rightmove’s mortgage expert said: “We’ve seen average mortgage rates drop at a pace not seen for a while this week, faster than many expected as lender competition hots up. The first sub 4% rate for those with larger deposits and prepared to pay a higher fee is the headline-grabber, but we’ve also seen…
Read More →
Coastal and sea front property
Estate Agent Talk

Why You Should Invest in Herne Bay Property

Herne Bay, a charming coastal town in Kent, is fast becoming a hotspot for property investment. With its picturesque seafront, vibrant community, and excellent transport links, Herne Bay offers a wealth of opportunities for property investors. If you are considering a property investment and looking for estate agents in Herne Bay to guide you through…
Read More →
Breaking News

Breaking Property News – 24/07/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   The recent UK election, with a new Labour government, is set to have significant implications for lettings. As housing is a devolved matter in Wales, local governance and devolution will play a crucial role in shaping this sector. Williams & Goodwin The Property People,…
Read More →