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Landlords targeted by further political intervention – Ying Tan

by: Ying Tan, managing director of Buy to Let Club
  • 03/05/2018
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Landlords targeted by further political intervention – Ying Tan
It’s been a busy old time for landlords of late. The rolling out of the new landlord tax relief system continued this month with landlords now only permitted to offset 50% of their mortgage interest.


Energy efficiency became an even bigger issue for landlords and there was yet more political intervention – this time coming in the form of a cross-party report calling for rogue landlords to have properties confiscated.

From a criteria point of view there were a handful of notable changes.

Axis Bank announced it will now stress the background portfolios for both individuals and companies at 125% at 5.5%.


Virgin’s refresh

Virgin Money had some good news for landlords when it revealed selected two-, three- and five-year fixed rates across all LTV tiers will be reduced by up to 0.09%.

Its new two-year fixed rate starts from an attractive 1.37%.

Interest rate stress for five-year fixed rate products has been reduced from 5.24% to 5.00% and Virgin will now consider landlords’ personal income to cover any rental shortfall between 100% and 145%, calculated at an interest rate stress of 5.50%.

In order for personal income to be used, however, there is a minimum income requirement of £50,000.

But not all of Virgin’s updates were welcome as the lender also revealed cashback on its two-, three- and five-year fixed rates from 60% to 75% LTV will be reduced to £600.


TMW removes age restrictions

There was great news from The Mortgage Works (TMW), which announced plans to remove its age restrictions for experienced landlords.

Previously the lender had a limit of 70 years (at the point of application).

This policy will remain in place for first time landlords and for experienced landlords who are borrowing over 65% LTV.

However, TMW says it “recognises the landlord population is aging, with options limited for many retirees seeking to continue their buy to let investment throughout retirement, in order to supplement their pension”.

On certain cases, it may request a business plan.



And, finally, the new rules on energy efficiency started to have an impact with Principality announcing that as of 1 April it will no longer end on properties in England and Wales that fall below an ‘E’ rating on Energy Performance Certificates (EPCs).

The lender will continue to accept applications if the privately rented property has a valid exemption.


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