Tougher times for landlords needing mortgages
Buy-to-let landlords will not find it so easy getting a mortgage for their investment in 2016, in the coming months the Treasury is expected to hand over greater powers to the Bank of England when it comes to regulating the buy-to-let mortgage sector.
The buy-to let sector has been increasing year on year in recent times and has been having an effect of causing an imbalance in the UK housing market when it comes to demand and supply for the domestic market, it is being seen as a threat to the financial stability of the UK in general.
The buy-to-let sector grew dramatically last year, with lending rising by 10% in the first nine months alone, the intended chnages to the sector makes it increasingly likely that growth in the sector will level off.
Reports show that a number of lenders including Barclays have tightened lending criteria, requiring an increase to the industry norm of rental income exceeding 125% of interest payments up to 135% for all new applicants.