oh dear(tm): 'Buy-to-let investors will need 50pc deposit - or no mortgage'

[AtW]

"Lenders are shrinking back from the embattled buy-to-let sector and tightening their criteria for new applicants.

The key ratio - the link between rental income and mothly mortgage cost - is being changed by a number of lenders, with the effect that landlords will either have to ramp up the rents they charge tenants, or borrow less.

Mark Harris, of mortgage broker SPF Private Clients, predicted that "the market is moving towards a situation where only those with a 50pc deposit are likely to qualify for a loan."

Barclays has been among the first lenders to move, dramatically raising the application criteria for new borrowers earlier this week.

Where previously Barclays required landlords to have a rental income of 125pc of the monthly interest, calculated at a mortgage rate of 5.79pc, it has increased this to 135pc at 5.79pc. "

Source: 'Buy-to-let investors will need 50pc deposit - or no mortgage' - Telegraph


I am getting worried about Sarah Beeny

[PurpleGorilla]

The horse has bolted, this only applies for the dumb schmucks running after the horse tulip.

Still every negative is another whimsy on the charm bracelet.

[MrMarkyMark]

I am getting worried about Sarah Beeny

Prey tell, how is this "worry" manifesting itself

[VectraMan]

The horse has bolted, this only applies for the dumb schmucks running after the horse tulip.

But the great thing is with less new BTL'ers it's harder for any existing BTL'ers to offload their properties when they want to cash in. They might even have to ask a price that ordinary people can afford.

[BrilloPad]

'Buy-to-let investors will need 50pc deposit - or no mortgage'

Typical Torygraph innumerates. no mortgage is 100% deposit so is covered by 50% case.

Its the same for commercial property so why not...

[diseasex]

who cares about barclays?

[AtW]

Prey tell, how is this "worry" manifesting itself

[shaunbhoy]

Prey tell, how is this "worry" manifesting itself

In the traditional atw way. A veritable deluge of monkey-spanking activity!!

[MrMarkyMark]

Ah, I see.

I was on about you. actually, old bean

[fullyautomatix]

Quite frankly BTL was getting a bit out of hand. Every man and his dog wanted to rent out some house or other which was bought using a mortgage and they wanted some poor soul to pay the monthly mortgage payment and some top up. How it was allowed for so long remains a mystery.