Buy to Let Changes

New criteria for buy to let lenders will affect the funding of newly renovated properties that are classed as new build.

Capital Home Loans will no longer lend on new build properties and newly converted properties.

Lenders now want investors to put down larger deposits by lowering the maximum loan to value they will lend. UCB want a 25% deposit up from 15%. Irish Permanent lowered maximum value to 80% - this amounts to a 20% deposit. Mortgage Express has withdrawn from the market, for buy to let investors, its 90% loan to value products.

Marketing at Mortgages state this is not to be judged over the whole of the buy to let market. Flats over commercial property, HMO’s and established properties give long-term yields.

The fact that renovated flats and houses now come under new builds probably surprised many landlords.

Landlords 'remain confident' about buy-to-let

Despite some recent worries in the market, landlords remain confident about their buy-to-let investments, according to new research.

Mortgage provider Bradford & Bingley surveyed more than 5,000 landlords in the UK to arrive at their findings, online consumer information website Easier reports.

It found that the vast majority of respondents - 96 per cent - anticipate that rent levels across their portfolios will rise or remain steady during the next six months.

Additionally, 88 per cent of landlords said that they have plans to increase their portfolios or keep them the same over this same period.

"Our research findings … reveal that confidence in the buy-to-let market remains high and there is very little concern over availability of tenants or rental yields," said Bradford & Bingley's director of mortgages Andy Wiggans said.

He said that many landlords are veterans of the buy-to-let market, but added: "Even those who have been landlords for under four years believe the sector remains strong, with many planning on expanding their portfolios."

Products offered by Bradford & Bingley include mortgages, savings, insurance and financial planning services.

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