Having a buy to let property has been a great investment over the last ten years, but now with the credit crunch lenders are tightening up on criteria. To be able to access the best
buy to let remortgage deals in the UK you will need to meet this criterion. Here are 5 points to consider if you will be eligible for the best rates.
Rental income
In the old days most lenders would be happy if the rental income was 100% of the mortgage payment. In plain English if the mortgage was a £100 a month the property had to rent for at least £100. These days the lenders want a minimum of 125% rental coverage to be offered the best buy to let remortgage deal.
Equity
It used to be standard that a lender would require a 15% deposit and in some cases 15% was all you need to get the deal. These days you will require a minimum of 25% deposit to and to get the best
buy to let deal you are looking at 40% deposit.
Credit score
Now that lenders have tightened criteria, if you have any missed or late payments on your mortgage you will be declined a remortgage. CCJ and Defaults no more than £250.
Arrangement fees
Banks are having trouble raising finance to fund buy to let
remortgage deals and one of the ways to keep the rates down his high arrangement fees. Some lenders are charging as much as 3.5% of the mortgage balance for the best buy to let remortgage deals.
Tenancy agreement
You must have a tenancy agreement in place, gone are the old day sof a landlord letting his property with a nod and a hand shake. If you do not have all documentation in place the lender will no lend
So if you want to get access to the best buy to let remortgage deals in the UK, you will need a 40% deposit, rental income of at least 125% of the mortgage payment, a good credit score and all documentation in place And you will be charged a whopping 3.5% fee. If you do not have all of these in place you will be declined for the best deals.
Buy to let is not the gravy train of easy money anymore, landlords need to check their portfolios and off load any non performing properties.
