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Thursday, May 05, 2016

Expect to pay an extra £10,000 on your BTL

With the tightening of BTL lending criteria brokers say landlords can expect to have to put down an extra £10,000 cash for a deposit on a average UK property. The figure is based on an average £211,000 property in England and Wales.

Many lenders in the market are shifting toward a standard 75% LTV to a 70% LTV following pressure from the BofE to restrict BTL lending.

Mortgage broker Ray Boulger, says: 

‘For the majority of buy-to-let contracts, a 25 per cent deposit is going to be a non-starter. You’re looking at a minimum of 30 per cent or 35 per cent deposit in some areas of the country.’

This follows on from Mortgage Works increasing the rental cover for mortgages from 125% to 145%.

The good times are well and truly over.

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