Selling August 2, 2016
     

Coventry Building Society Increases Rental Requirement

Coventry Building Society increases rental requirement


Coventry Building Society has become the latest lender to raise the rental income requirement on their Buy-to-Let mortgages. As of this week their calculation has increased from 125% coverage to 140%.

This follows a string of lenders who have reviewed their policies in response to a Bank of England consultation earlier this year. The regulator has put a focus on affordability and stress testing to ensure that Buy to Let mortgages remain sustainable, even if costs rise.

Lenders including Coventry, The Mortgage Works and Barclays have already taken action, changing their criteria to account for future increases in costs and the potential for lower profitability.

Clearly property investors need to be aware of the increasing costs, including changes to tax relief, over the coming years and take account of this when planning any future purchases. 

The good news is that Buy-to-let rates are currently very low, so now is a good time to review any existing mortgages and look at cutting outgoings now.


Guild Mortgage Service, Provided by London & Country Mortgages

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Castles

Aldershot Office
175 Victoria Road
Aldershot
GU11 1JU
United Kingdom


Sales: 01252 333003
Lettings: 01252 333391
aldershot@castles.co.uk

 

          



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Specialists in residential sales and residential lettings in Farnham, Surrey and Aldershot, Hampshire. With 28 years of excellence. We know this business inside out, and with expert local knowledge and a great team we’ll have you on the move before you know it. We offer a unique blend of professional and friendly staff coupled with our 28 years of local expertise and market insight. Thousands of doors opened since 1992!