Many buy-to-let investors who bought their properties under old affordability rules may now find that they can’t remortgage. New rules introduced on January 1 this year restrict the amount that buy-to-let landlords can borrow. But they will also affect thousands of current buy-to-let landlords whose properties were bought before the new rules were brought in and who now want to remortgage.
- Buy to rent investors may find that new laws make a remortgage of their rental properties impossible.
- Based on the perceived rise of mortgage costs and the presumed ability they had to cover costs many landlords could remortgage prior to the start of the year.
- The new English laws could put the burden of debt, for landlords, in a realm where the affordability of a remortgage is beyond many.
“Now, however, most large lenders have increased these figures to 145pc of their mortgage costs and a “stress rate” of 5.5pc following new Bank of England rules on affordability that were introduced at the start of the year.”