The upcoming MCD (for short), which comes into effect from the 21st March could have a significant impact. As the name would suggest, this is a European wide change so that all EU members disclose mortgage agreements in the same format. Aside from many regulatory changes, there is a new category of Buy To Let which will be known as a ‘Consumer BTL’. This will relate to a property which is now rented, but was not purchased explicitly for the purpose of being a rental investment. Most commonly this will be a Let To Buy (where you are moving out of your current property and retaining it as a BTL), or Inherited Properties. Lenders have reacted in a mixed way, some are treating these as a normal BTL, others are being more cautious and a few are not funding this at all. This is also coming in an environment where lenders are increasing their rental stress tests, which in some cases, it is tougher to achieve larger loans on rental properties.
While this could be read as ‘bad news’, it really just emphasis the need to know what lenders to call on and how. As a broker, we have access to many lenders and schemes that are not open to you if you were to approach them directly.
With such a fast changing landscape for finance in the BTL sector, we have offered help and advice to many clients to navigate these changes to get the outcome they desired. Whether it was reducing their costs by refinancing, gearing up a portfolio to buy more properties, or getting into the market for the first time, my team are on hand for any mortgage related queries and are always happy to help.