Woolwich changes its buy-to-let affordability rate
Woolwich for Intermediaries has increased its buy-to-let affordability rate making it harder for landlords to secure a large enough mortgage. With effect from Monday 19 May the lender is raising its affordability rate from 125% of 3.59% to 125% of 5.79%.
This substantial adjustment means that landlords planning to buy a property generating £1,250 rent each month will see the amount they can borrow reduced by over £100,000.
Their previous buy-to-let rental calculation was very attractive to landlords and it pretty much undercut everyone else in the market. Other lenders are already lowering their buy-to-let rates to try and attract more landlords. For example, NatWest has launched a range of buy-to-let mortgages with some rates improved by 0.64%.
To secure a buy-to-let mortgage, call Trinity on 020 7016 0790. You can also email enquiries@trinityfinancialgroup.co.uk
May 16, 2014
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