End of the ‘buy-to let dream’ for middle-classes
With the introduction of tough new mortgage affordability tests from next year, experts have warned that it’s the beginning of end of the ‘middle-class buy-to-let dream’.
Citing concerns over “financial stability”, Philip Hammond, the UK Chancellor, has announced additional rules on buy-to-let mortgages. Under the plans, affordability checks are to be brought in, which will require investors to prove they can make a profit of 25% from tenants even if large rate rises make their mortgage more expensive.
This will come as a blow to many potential property investors who may be considering turning to buy-to-let to fund retirement income after being effectively barred from putting more money in to their pensions by the Government.
Full story available from The Telegraph: http://www.telegraph.co.uk/news/2016/11/16/buy-to-let-crackdown-will-end-the-dreams-of-middle-class-investo/