There were plenty of predictions before the vote, and as soon as the shock Brexit result was announced there was plenty more nervous number crunching.
Coupled with the recent changes to buy-to-let lending and the stamp duty increase, this further fluctuation of the property market couldn’t have come at a worse time if you are thinking of investing in a rental property, especially with news that mortgages lenders are looking to impose tighter checks on buy-to-let landlords as part of a strategy to curb buy to let lending.
Under new recommendations, prospective landlords must be able to illustrate to the lender that their prospective rental income will cover 145% of their mortgage.
The recommendations suggest that prospective landlords in some areas could face potential deposit requirements of up to 60% according to property crowdfunding platform Property Partner. Worcester in the West Midlands requires the biggest deposit, with a landlord wanting to buy an average priced property needing to put down a minimum 61% deposit – equivalent to £115,000!
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