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Buy to let mortgages denied to 20% of landlords
A fifth of landlords wanting to purchase additional buy to let mortgages are at risk of being denied a mortgage according to research by the National Landlords Association.
Some 67 per cent of landlords says they rely on a buy to let mortgage to fund their portfolio. But about 20 per cent have not been able to expand due to difficulties in accessing buy to let finance over the last year while over half of all would-be applicants fear lenders will fail to consider their individual circumstances and/or believe current buy to let lending criteria are too conservative.
The NLA’s research also asked landlords what they would say to lenders if given the opportunity.
One typical response was: “Mortgage lenders are becoming increasingly difficult to work with. The requirement to produce further information on income is causing delays and becoming problematic…if your income does not fit their box on criteria they say no, which wastes time and slows the process.”
Another was: “Mortgage lenders should consider each borrower on their own merits, and not impose a blanket ban on lending to individuals earning less than £25,000, regardless of their personal circumstances. Someone who is lucky enough to have no outgoings, servicing a mortgage with personal income of £25,000 a year is more than adequate.”
