Bank of England has made it harder to get a mortgage for landlords

There is no doubt Landlords are feeling the changes since tougher rules have been put in place. As many as 63% say it is now much harder to get a mortgage

The changes were introduced in two stages:

1. January 2017 – required lenders to apply 5.5% an interest cover ratio (ICR) on all products with less than five years and minimum coverage for mortgage payments must be 125% of the mortgage payments
2. September 2017- requires portfolio landlords – those with four or more buy to let mortgages to go through more specialist process which includes additional affordability tests of entire portfolio and business plans

You can read the full article published in Property Reporter

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