{"id":1618,"date":"2015-12-07T10:29:11","date_gmt":"2015-12-07T10:29:11","guid":{"rendered":"http:\/\/www.propertyportfoliosoftware.co.uk\/blog\/?p=1618"},"modified":"2015-12-07T10:29:11","modified_gmt":"2015-12-07T10:29:11","slug":"buy-to-let-affordability-squeeze","status":"publish","type":"post","link":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/buy-to-let-affordability-squeeze.html","title":{"rendered":"Buy to Let Affordability Squeeze"},"content":{"rendered":"<p>Barclays is the first of the high street lenders to impose stricter affordability checks on buy to let borrowers ahead of government changes to landlord tax relief benefits. The new, stricter affordability checks reflect fears that many landlords will struggle to make payments on their buy to let <a href=\"http:\/\/www.propertyportfoliosoftware.co.uk\/video.create_mortgage_loan.html#watch-demo-anchor\">mortgages<\/a> once interest rates rise.<\/p>\n<p>At the moment, rental income needs to be 125% of monthly mortgage payments, but as of Monday 6th December, landlords will need to demonstrate that <a href=\"http:\/\/www.propertyportfoliosoftware.co.uk\/video.basic_rent_schedule.html#watch-demo-anchor\">rental<\/a> income is at least 135% of their monthly mortgage payment.<\/p>\n<p><strong>A Responsible Lender<\/strong><br \/>\n\u201cAs a responsible lender, Barclays wants to ensure that our aspiring landlord customers can afford the increase in tax liability once these changes come into force,\u201d says Barclays in a letter to mortgage brokers.<\/p>\n<p>The Bank of England is also concerned about buy to let borrowing. They say buy to let landlords will \u2018be more vulnerable than owner occupiers to an unexpected rise in interest rates or a fall in income\u2019.<\/p>\n<p><strong>Other Lenders could Follow Suit<\/strong><br \/>\nExperts are now warning that other lenders in the buy to let sector are likely to follow Barclay\u2019s lead and tighten up their lending criteria.<\/p>\n<p>\u2018This is a big change from Barclays and could well spark a number of similar reviews from lenders who want to be seen to be taking into account the effect of forthcoming tax changes,\u2019 warns the director of Coreco Mortgage Brokers.<\/p>\n<p>\u2018With buy-to-let very much still in the crosshairs, it would be no surprise if further action is taken against what is now seen as an easy target.\u2019<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Barclays is the first of the high street lenders to impose stricter affordability checks on buy to let borrowers ahead of government changes to landlord tax relief benefits. The new, stricter affordability checks reflect fears that many landlords will struggle &hellip; <a href=\"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/buy-to-let-affordability-squeeze.html\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1618","post","type-post","status-publish","format-standard","hentry","category-property_investment"],"_links":{"self":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1618"}],"version-history":[{"count":3,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1618\/revisions"}],"predecessor-version":[{"id":1621,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1618\/revisions\/1621"}],"wp:attachment":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}