With rental yields having fallen over the past year, many buy-to-let investors are finding buying suitable investment property harder due to some lenders demanding up to 10% more than the monthly mortgage payment in rental income before they will lend on a property. This is therefore leading to some lenders offering lower mortgage amounts.
SPF can help guide serious buy-to-let investors, who are building up a portfolio of properties, through the maze of lenders to help them select one which uses the most advantageous rental yield calculation for given situations.
Simon Jones, Director at SPF, comments:
“People building up property portfolios using buy-to-let mortgages are finding it harder to secure borrowing as rental yields fall. While many lenders sensibly put in place higher income yield calculations to protect borrowers from further falls in rental income, for the serious property investor securing a high income from a property may be less important than buying property for long-term capital growth so a lower rental yield calculation would suffice. We can help source those lenders who use more flexible rental yield calculations.”
