Earlier this year the EU brought into place new regulations concerning buy-to-let loans, providing a distinction between those who are baccidental landlordsb and have inherited property that is already being let out, and professional landlords with a property portfolio based around buy-to-let properties.
A Tighter Control Over Consumer Landlords
If you are looking for a personal mortgage for a residential property you are likely to face many more questions and regulations than someone looking for a business mortgage, who is seen to require less supervision. Residential landlords are seen as consumers and more of a brisk;b in terms of finding out whether they are capable of paying pack their mortgage on time.
Business landlords usually have to put forward a rental coverage figure, an amount that their tenants will be charged to ensure that the basic mortgage is repaid and a bit more.
Consumer Buy-To-Let Borrowing
The new legislation requires those individuals who have inherited a property they used to live in and now rent out, or one that they intend to keep in the family and rent out in the meantime to private tenants to go through the same criteria that a residential mortgage application would go through. A mortgage lender must know be certain that the landlord can afford to pay back the loan.
At Central Mortgages we understand how confusing it might be should you have inherited a property and want to let it out to tenants. Our advisors are here to help you work out the best route for you and your property.
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