Multiple Property Landlord? Are You Ready For The New Buy To Let Rules?

On the 1st of October new rules from the Bank of England will stipulate that lenders must provide significantly more information for underwriting purposes for anyone who owns more than four buy to let properties.

From this date an applicant will have to provide details of all the other mortgages and properties in their portfolio regardless of whether the mortgage applied for relates to it directly.

Whether these homes are held as an individual or a limited company will not matter.

Bill says that there will inevitably be an increase in the paperwork required and the time to process the mortgage as lenders get used to the changes.

His advice is you will need the following for your application:

  • Tenancy agreement for each property.
  • Current Mortage statement for each property.
  • Bank statements showing the rental income so it can be cross referenced with the mortgage payments
  • In addition to evidence of income and bank statements.
  • Some lenders may also want to see your rental tax returns or SA302s.
  • Keep a spreadsheet summary of your portfolio.

He commented "It really is vital to do your Buy to Let finance via a broker because qualifying criteria now is more complex than a residential mortgage.

In some cases potential borrowers could be turned down for a mortage if they do not have enough equity in their portfolio. A broker can look at whole market advice and help guide you through the changes, maximising your chances of being accepted.

You can read more about Bill and his services and book an appointment here:

http://www.bramleys.com/mortgages.php

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