View more on these topics

Most BTL lenders expected to adopt 140% rental covers this year

Most lenders in the buy-to-let market will have moved rental covers from 125 to at least 140 per cent by the end of the year, according to Mortgages for Business managing director David Whittaker.

Speaking at the FSE exhibition in London today, Whittaker said that brokers have a “fundamental” role in ensuring their clients are well informed on the changes taking place, including the increases in stress test requirements that are becoming increasingly commonplace among buy-to-let lenders.

The event was held in Old Billingsgate and attended by more than 1,200 delegates. Whittaker said stress tests are “getting testing” for brokers as the requirement for 145 per cent rental covers creeps into the market.

He predicted a change to stress test requirements by the end of the year for those who haven’t already upped affordability demands and that, combined with the stamp duty surcharge and a reduction to tax relief available to landlords, buy-to-let has “become very taxing.”

Whittaker also forecast that new underwriting standards would be introduced for the buy-to-let sector before the end of the year, particularly for professional landlords.

Separately, speaking as part of an industry panel debate, One Savings Bank sales director Adrian Moloney anticipated a move towards a “more professional” buy-to-let sector and away from the “dinner party” landlord.



Buy-to-Let Watch: Autumn brings sense of foreboding

HMRC has caused concern by implying planned tax changes and the PRA is set to pronounce on tougher lending standards Recently there was a scare over the Finance Bill going through the House of Commons. New wording, slipped in without consultation, suggested that HM Revenue & Customs was minded to treat the sale proceeds on […]


Aldermore cuts Help to Buy rates by more than 1%

Aldermore is reducing rates on its Help to Buy: mortgage guarantee offering. The lender is replacing its existing two-year fixed rate products with a standard, non-tiered offer. Available immediately, the new product offers: 4.98 per cent two-year fixed rate up to 95 per cent LTV with a fee of £999 The previous rates were 5.99 per cent at […]


Buy-to-Let Watch: Do your homework on student BTL

Student property is still a lucrative market but it is important to make your clients aware of the restrictions affecting it Can you believe it is already September?  Summer holidays are over (you can almost hear the sigh of relief from parents across the country) and this year’s crop of first-year students are packing their […]

Naming a reward programme

Six tips to get your reward programme name right

by Debra Corey, group reward director  Choosing a name isn’t easy. Whether it’s for your new puppy, a bundle of joy or your reward programme, a name determines a first impression – and often a lasting memory. When it comes to your reward programme, the name will determine how your employees feel about it even before […]


News and expert analysis straight to your inbox

Sign up