Inside Property Website


Too Many Levers

September 26, 2017

If you own four or more properties, brace yourself for the latest tranche of buy to let criteria being introduced by lenders as a result of Bank Of England regulation.  From 30 September 2017, the bank’s Prudential Regulation Authority (PRA) now defines you as a portfolio landlord and lenders must seek additional information from you such as your experience of the buy to let market, full portfolio of properties and outstanding mortgages, your assets, liabilities and tax liabilities, your business plan and cashflow predictions.
These requirements are in addition to minimum Income Coverage Ratio [...]


Top 10 Challenges Facing London Landlords

April 10, 2017

1. Regulation of Buy To Let Mortgages
The rise in Buy To Let mortgages from 5% in 2009 to 16% of mortgage lending in 2016 concerned the Bank of England.  The governor argued that if the market had a downtown, lots of landlords selling all at once could seriously affect the UK economy.  Regulation by the Prudential Regulation Authority (PRA) started on 1 January 2017 and a second phase will come into force on 30 September 2017.  Phase 1 introduces a new stress test which is being interpreted by most lenders as 145% rental [...]


Buy To Let Loans Become Tougher

February 24, 2017

Big changes are afoot with buy to let lending that will make it increasingly difficult to get a loan.  If like me, you refinance several loans a year as discounted products come to an end, then you need to take a long hard look at the changes and start planning, particularly if you were hoping to raise more money.
Prudential Regulation Authority (PRA) rules governing buy to let lending came into effect on 1 January 2017.  Over the past 2 years most lenders have started stress testing applications at 125% rental coverage and a [...]


After Brexit

July 31, 2016

At just over five weeks since the EU referendum, the Westminster village has calmed and one or two senior political figures have even gone on holiday.  A long way from the panorama of hourly breaking news headlines and a stream of political shocks.  I’ve just re-read a blog I wrote called ‘The Mess We’re In’ which included comment on the Conservative leadership contest.  By the time [...]


Fight Back

June 18, 2016

It is nearly a year since the Summer budget when Osborne announced the first raft of punishing tax changes for the UK’s 1.7 million landlords, only to be compounded by yet more in the Autumn statement.  After much gloom had descended on the landlord community and many resolve to sell up, it was with so fantastic last week to hear the news that the Court of Appeal ruled that West Bromwich building society was not entitled to arbitrarily hike mortgage interest rates for landlords.  The result of this court action has surprised many [...]