Investors’ borrowing is now based upon expected rental cover of 125 per cent of the monthly mortgage payment for all products, with the exception of five-year fixed rates. On fixed deals of five years and over, the required rental cover will reduce to 120 per cent of monthly mortgage payment.
Andrew Moss, BTL product manager for Mortgage Express, said: “The buy-to-let market has evolved considerably since its inception. Continuing product innovation has played a major part in making bricks and mortar the popular and accessible investment vehicle it is today.
“This move not only ensures we remain competitive in the market but, in addition, we firmly believe it poses no extra risk to our customers. For example, at 125 per cent cover, monthly mortgage payments are covered for the equivalent of three months pa and this compares to average rental void periods (where voids arise) of only 27 days p.a. as reported by the Association of Residential Letting Agents.
“We strive to make sure that our products and services meet the needs of both our brokers and borrowers whilst reflecting what is happening in the market. Ensuring Mortgage Express maintains its position as the number one buy-to-let lender in the UK.”
