FREE tenancy agreement
FREE landlord software
The option of
arranging a mortgage holiday on buy-to-let properties during the pandemic was a
supportive measure introduced by the government and buy-to-let lenders. The
possibility of deferring up to 6 months’ payments was meant to help landlords
if their tenants were struggling to pay rent due to the impact of Covid-19.
Landlords
were reassured that arranging a mortgage holiday would not negatively affect
their credit score, leading most to believe that it would not impact on their
ability to obtain further finance on their buy-to-let investments.
However,
many landlords have since found out that taking out a mortgage holiday has made
getting a new buy-to-let mortgage more difficult. Jane Simpson at Property Hawk
Mortgages says:
“Although applying for a mortgage holiday will not
affect a customer’s credit file, lenders may reasonably ask why it was needed.
As they assess the risk of lending to an applicant, lenders will want
reassurance that there aren’t any existing financial issues with the property,
portfolio or business in question.
Lenders may not take such a lenient
view of applicants who have applied for a buy-to-let mortgage holiday during
the crisis as this could be interpreted as demonstrating underlying cash flow
issues with management of the property.This may make it more complicated for those who
have taken a mortgage holiday when they seek further finance.”
This seems a harsh state of affairs for
landlords who applied for a mortgage holiday in good faith to protect their
buy-to-let investments and under the impression that it would not harm their
business.
To discuss your options with a buy-to-let
mortgage expert, please call our support team and we will be happy to help you.
CALL NOW ON 029 2069 5446
Property Hawk Mortgages is here to help you make sense of all your buy-to-let mortgage options and to offer our experience and expertise to support you in finding the right product to meet your needs.
Posts
No comments:
Post a Comment