Buy-to-let landlords labeled mortgage prisoners

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The Mortgage Broker Ltd has labelled landlords ‘buy-to-let prisoners’ due to potentially being stuck on unsatisfactory rates.

The nationwide broker said landlords may feel imprisoned by stricter affordability testing taking their tax statuses into account.

The amount of tax relief they can claim will be reduced from next month while the Bank of England’s Prudential Regulation Authority introduced stress testing.

Darren Pescod, managing director of The Mortgage Broker Ltd, said: “Britain’s two million landlords are facing assaults from both the taxman and the Bank of England.

“The mortgage restrictions are very bad for landlords and pose a major threat to buy-to-let investments.

“If landlord mortgages are tougher to secure, buy-to-let landlords could find themselves stuck on expensive rates indefinitely.”

He was however buoyed by Ipswich Building Society’s two buy-to-let products that will only assess rental income at 125% of the pay rate, of which The Mortgage Broker Ltd is an intermediary partner.

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Written by: Houseladder