Unusual Mortgages are one of the UK’s leading financial advisers, who offer advice to people looking for Buy To Let and Let to Buy Mortgages. Over the last two years we have noticed a gradual change in the lending rules for applicants looking to finance Buy To Let properties.
We have noticed a clear attempt from the Bank of England, Major Lenders and the UK Government to control Mortgage lending in the UK and in particular the amount of money being borrowed by mortgage applicants. This has meant that many groups of people are finding it very difficult to find Buy To Let mortgage finance.
Here are some useful facts and figures from our latest research into the Buy To Let Mortgage Market …
61%* of the Mortgage lenders surveyed offer Buy To Let Mortgages, which means that not all mortgage lenders that you approach will even offer Buy To Let Mortgages to their own customers.
97%* of Buy To Let Mortgage lenders verify the applicants personal income in some way. For example, they ask to see payslips, bank statements, tax returns or business accounts. (Of course, this means 3%* do not verify income!)
The average personal income that is required by a Buy To Let Mortgage lender in the United Kingdom is just under £25,000*. Of the Mortgage lenders that have a minimum income level requirement, the lowest was £20,000* and the highest £50,000*.
19%* of Buy To Let Mortgage lenders do not have a minimum personal income level for an applicant to apply for a Mortgage.
75%* of Buy To Let Mortgage lenders require the mortgage to be finished before the age of 75, which of course is a major concern to people taking out Buy To Let Mortgages as their plan for retirement.
25%* of Buy To Let Mortgage lenders will allow borrowing to finish past the age of 75, which of course allows applicants to keep their properties as a pension into retirement. (Some lenders will allow an applicant to keep their Buy To Let property indefinitely!)
All of the above facts and figures were compiled in the summer of 2015 by contacting 70* of the UK’s leading mortgage lenders. The aim was to compile a general “market view” for both our existing and potential new clients. We quickly realised from this research that the number of mortgage lenders in the UK asking applicants for proof or verification of income has increased significantly.
We also identified that only a handful of Mortgage lenders will agree a Buy To Let Mortgage without a minimum income requirement in their criteria and even fewer mortgage lenders are now offering Buy To Let Mortgages without any minimum income or without verifying the applicants income.
This has therefore made Buy To Let Mortgages very difficult to obtain for Self Employed people in particular, but not completely impossible. If you are looking for Buy To Let finance without any minimum income requirement, or without any income verification checks, then give us a call to see if we can help with your search?
Visit www.unusualmortgages.co.uk for our free Large Mortgage Fact Sheet
If you require more information on Large Mortgages, Buy to let, Self Employed or Executive Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk
*All facts and figures in this report were compiled in the Summer of 2015 by our lead financial adviser Chris Morgan after contacting 70 of the UK’s leading mortgage lenders.