Coventry Building Society Boosts Landlord Mortgage Affordability

by | Friday 22nd Mar 2024 | Mortgage News

Landlord Mortgage Affordability Changes From Coventry

Landlord Mortgage Affordability Changes From Coventry

Coventry for Intermediaries, the mortgage broker only platform for Coventry Building Society, has taken significant strides in supporting landlords in 2024 with its latest revisions to the buy-to-let application process. These changes, aimed enhancing landlord mortgage affordability, are set to provide a more accessible avenue for property investment financing. Hopefully making professional property ownership and letting a more profitable and sustainable income.

Changes To Landlord Mortgage Affordability From Coventry Building Society

The main change announced by Coventry revolves around the reduction of reference rates across various fixed-rate periods, potentially allowing landlords to leverage their rental income more effectively. By changing reference rates, landlords should hypothetically be able to borrow more against their rental income within a 75% loan-to-value limit. I.e. 25% deposit or equity minimum.

So what does this mean specifically? Under the revamped scheme, landlords should be able to benefit from reduced reference rates. For instance, a basic rate taxpayer with a rental income of £900, opting for a 5-year fixed rate, now has the opportunity to borrow up to £181,895. This marks a significant increase from the previous borrowing limit of £157,091.

Reduced Buy-To-Let Mortgage Rates

As well as changing landlord mortgage affordability criteria, many product rates have been revised downwards, with the 5-year fixed rate set at 4.75%, down from the previous 5.5%. Similarly, 2-year fixed rates on remortgages without additional borrowing have been lowered to 5% from 5.5%. For purchases and remortgages involving additional borrowing, the new rate stands at 6.5%, down from 7%.

Buy-To-Let Affordability Calculator For Smoother Applications

Coventry’s standard buy-to-let policy specifies that the minimum rental income must equate to 125% or 145% of the mortgage payments, calculated using the relevant reference rate. To streamline the process for brokers, Coventry now offers affordability calculators on its intermediary website, facilitating precise determinations of maximum loan amounts or requisite rental incomes.

Speak To A Specialist Buy-To-Let Mortgage Broker

When trying to arrange a buy-to-let mortgage in 2024, using the expertise of specialist brokers is indispensable. With constantly changing lender criteria and market dynamics, landlords obviously need tailored guidance to secure the best and most profitable deal possible. That’s why engaging the services of a specialist buy-to-let mortgage broker, like ourselves at Oportfolio Mortgages, proves essential for landlords seeking to capitalise on Coventry’s enhanced buy-to-let application process.

At Oportfolio we specialise in buy-to-let financing, offering all-encompassing support for any landlord that needs it. From large portfolio owners to first-time landlords. By using our extensive industry knowledge and experience, we can get landlords the most favourable terms amidst changing market conditions. Give our team of buy-to-let mortgage brokers a call today. We are here to help.

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