Landlords concerned about the prospect of the EU killing off the Great British buy-to-let mortgage have been granted a reprieve after a committee scrutinising the European Commission's mortgage credit directive voted to allow the UK to exclude buy-to-let mortgages from the new rules. Property Hawk has been campaigning against the new rules and with over 3000 landlords signing our petition to date we know that you feel the same.
We have always been clear in our opposition arguing that it would prejudice investment in the private rented sector and particularly prevent newbie landlords investing in property for the first time as the judged affordability by lenders would have to be based on an individuals income as a posed to the relationship between the rent and cost of borrowing (an initiative which heralded the arrival of buy-to-let in the the late 90s).
Landlords cannot breath a complete sigh of relief yet though. The amendments to the original proposal must now be voted through the European Parliament. The European Council will then decide its position and then the three bodies, the council, parliament and commission will then enter negotiations over the final text.
The saga looks set to continue although the outcome looks more promising. We'll keep you posted!
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