Sue Woodall, Solicitor, Director and head of Astle Paterson’s Conveyancing Department discusses the latest proposed changes facing the buy-to-let market.
Sue said “The Prudential Regulation Authority (PRA) – part of the Bank of England, has stated that buy-to-let purchasers are more likely to default on their mortgage.
In light of this, the PRA has proposed that mortgage lenders should introduce stricter tests when deciding whether to grant potential landlords a mortgage for them to purchase an investment property.
The proposed new rules include, first, stricter affordability testing which would include giving consideration to costs associated with renting a property (including tax liabilities) and, where a potential borrower intends to use personal income in addition to anticipated rent to fund the mortgage, details of their personal income and liabilities (including income tax, national insurance, other outstanding debts and living costs) – and secondly, interest rate affordability stress testing through the bank assessing a borrower’s capability to meet mortgage payments in the event of an interest rise.”
The consultation around the proposed changes is due to last until 29th June 2016.
Should you be in the process of buying a property, either as an investment or if you are moving home, Astle Paterson are Conveyancing Quality Scheme accredited and can advise and assist you through all aspects of your property transaction.
Please contact our conveyancing department on 01283 531366 or by email at firstname.lastname@example.org.
This is our Conveyancing Advice series, where we’ve been talking about the involved process that is selling a house, the ...Read More
The government has finally announced plans to introduce ‘no fault divorce’, which means divorcing couples no longer have to blame ...Read More
As part of our commitment to provide expert advice in legal matters for concerned customers, we’re providing advice on the ...Read More
This is the final part of our 3-part series on the proceeds of divorce with children. So far, we have ...Read More
This is the second entry in our four-part conveyancing advice blog series, where we hope to shed some light on ...Read More
Astle Paterson, Clay House,
5 Horninglow Street, Burton upon Trent
Staffordshire DE14 1NG
Tel . 01283 531366
Book an appointmentBurton on Trent | Uttoxeter
Business & Commercial • Conveyancing • Family • Litigation • Wills, Inheritance Tax & Probate • Employment