Hi, I am sure you are already aware of this but I went for a BTL mortgage on an new BTL today and was rejected as they wanted the rent to be 145% of the monthly payment, calculated on what the monthly payment would be at 5.5%, not what it actually is. This wipes out any properties in my own area (South Coast) as the rents just aren’t high enough to reach that compared to the house prices. I had previously been looking in the Middlesborough area but although found some with good returns the actual properties were under £50k so no one apart from Together would lend and they wanted to add so many fees it made it not worthwhile. Bearing in mind others are still investing I am curious to know if this formula works elsewhere. I have spent days on Rightmove on the buy and sell options in most counties but can’t get it to work. Any polite suggestions or any lenders who aren’t applying this test?
Investing in a Property (England)
What towns does the 5.5% stress test at 145% of mortgage payment at 5.5% stack up in?
04/09/2018 4:13 pm
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