Buy to Let Property Lending Criteria becomes Tighter
The possibility of owning buy to let property for the hard working middle class just got a lot tougher as the Bank of England could soon be increasing the down payment on all buy to let property. The current level of down payment is around 20%, according to the latest lending criteria. This criteria is becoming tougher with the Bank of England requiring as much as 50% down payment as early as this autumn.
The buy to let sector has always been a window of opportunity for middle class savers looking for a solid investment. The landscape is now changing for the group and could soon be limited to only upper class affluent.
For years, middle class savers have fueled a boom in buy to let property investments. Now, however, it is believed the new tougher lending criteria will prevent a possible bursting of a real estate bubble and subsequent crisis in the market.
As the buy to let sector goes through a lending transition, the remortgage market continues to motor on like a freight train. Activity within the remortgage sector remains strong and is expected to remain strong in the opinion of many close to the market.
A remortgage continues to elude the everyday thoughts of many house owners who are seeking a method to lower the monthly mortgage payment. The financial tool enables owners to not only secure a lower monthly payment, but to also access valuable funds which are currently stored in home equity.
The entire process has now become so streamlined that it can take place entirely online.