Tuesday, 13 May 2014

Barclays makes buy-to-let lending tougher - a sign of things to come?

Barclays will begin stress testing it's buy-to-let mortgages differently from next week.

Whereas it currently tests applications against 125% of the pay rate this will change to 125% of a 5.79% nominal rate. In most cases this is a stricter set of criteria, limiting what Barclays will lend on, presumably as they start to factor in future interest rate rises and how this could effect buy-to-let investors margins.

This new affordability calculation means the maximum amount of money you could borrow from Barclays, based on the property's rental value is:

£500pcm = £82,901
£600pcm = £99,481
£700pcm = £116,062
£800pcm = £132,642
£900pcm = £149,222
£1,000pcm = £165,803
£1,100pcm = £182,383
£1,200pcm = £198,963
£1,300pcm = £215,544
£1,400pcm = £232,124
£1,500pcm = £248,704

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If you are looking for an agent that is well-established, professional and communicative in Chichester, then contact us to find out how we can get the best out of your investment property.

E-mail me on clive@crjlettings.co.uk or call 01243 624 599.

Don't forget to visit the links below to view my previous buy-to-let deals and Chichester Property News articles:


c/o CRJ Lettings, 30B Southgate, Chichester, West Sussex, PO19 1DP
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Location: Chichester, West Sussex, UK

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