There are some new Bank of England rules which were introduced and they are rather strict. Lenders were happy-go-lucky to give out loans in the past, but not so much now. These loans were buy-to-let and it is just that. Loans handed out to allow buyers to lease the homes they purchased with those loans. Now buyers are being screen more and are approved for loans that corresnpond to their own circumstances. All good things come to an end.

Key Takeaways:

• It’s becoming harder to obtain loans for the purchase of property for rentals.
• Banks are now requiring assessments of the property owners ability to cover the costs of the mortgage beyond the rental income.
• Loans have fallen partially due to this and compared to the previous year (2016) have fallen 39%, mainly due to increased tax on second property.

“The tightening in criteria means that the same rental income will not support as large a borrowing amount as it might have done only 12 months ago.”

Read more: https://www.telegraph.co.uk/personal-banking/mortgages/lenders-pull-back-buy-to-let-can-get-best-deals/