Buy-to-let loan limits wildly different
Buy-to-let lenders are using wildly different rental and income calculations to work out how much money they will lend for a mortgage.
Research for The Sunday Times by Trinity Financial highlights how lenders apply vastly different approaches.
Someone collecting rent of £1,250 a month from their tenants could borrow £463,320 with Clydesdale Bank but only £200,333 with Virgin Money and £218,181 with NatWest.
Aaron Strutt of Trinity Financial explains: “More lenders are offering buy-to-let mortgages but the market can be very confusing. Maximum loan sizes often vary significantly and many borrowers therefore cannot secure a large enough loan to buy their property without guidance from a broker.
“Clydesdale Bank and Woolwich use personal income to provide larger buy-to-let mortgages and they are offering some generous maximum loans. Many lenders don’t make it clear what rental calculation they are using, even though it is a fundamental part of the deal.”
For help to secure a larger buy-to-let mortgage call Trinity on 020 7016 0790.
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