After two decades as a landlord, James Fraser thought remortgaging two buy-to-let properties would be “just a quick switch — same amount of money. But it was hell.”
When Fraser, 49, applied for 50% loans on two £280,000 terraced houses in Hertfordshire early this year, several lenders “turned me down flat”. It took five months and cost almost £8,500 in fees before he secured financing.
From the end of this month, stricter lending rules for owners of four or more mortgaged buy-to-lets will make stories like Fraser’s more common.
Every time such landlords refinance one property, or buy another, lenders will have to assess their income across their whole portfolio, under new requirements from the Bank of England.
The Bank’s Prudential Regulation Authority is clamping…