To get a mortgage to invest in the UK is easier than the British with the aim to live in this house

The Bank of England continues to monitor the property market in the UK “but to let” (buy to rent), paying attention to how the changes announced in autumn affected the market.

In recent years, thanks to low interest rates, market conditions significantly increased the number of homeowners, which leads to higher prices. The Bank believes that the rate increase will help to slightly reduce the pressure on the market from investors. The number of buyers who bought property for investment purposes, twice more than those who bought property to live in it. In addition, the appearance on the market of new , often random people, led to lower quality standards in the sector of rental residential real estate.

On the mortgage market, a situation when financial stability has led to the fact that to get a loan from the Bank to the investor is much easier than to the buyer of real estate in England for his own residence.

Thus, according to the recommendations of the regulator to a positive decision on the allocation of credit, the income must be 125% more than the monthly payment on the loan, which is issued on terms 5% -6%. And according to the recommendations of the Bank of England, which was released in July 2014 for the loan for the purchase of apartments in the property, the potential buyer must pass a stress test, where it should show a stable income that is available to cover 7% mortgage rates. This is despite the fact that lending rates for the purchase of the property an average of 0.7% less than the rates for investors “Buy to let”

Steve Bolton, founder of Platinum Property Partners, believes that government initiatives to pressure on investors to “buy to let”, will not help solve the problem of housing affordability in the UK. The government plans to receive about £1 billion can be destroyed by compression of the market as investors begin to rapidly withdraw capital from the market. In addition, this will hit the fathers and mothers who saved their entire life the means to help their children buy a house. Steve thinks that not only new investors will refuse to invest in the property market in the UK, but many lovers on the market will take of it by selling their items.

And the lack of facilities for lease, respectively, will lead to an increase in rent that is not exactly consistent with the purposes of the government.

® Alice Morgan. G. 03.12.2015

KNIGHTSBRIDGE, LONDON SW1X – £8,750,000

MONTPELIER MEWS, KNIGHTSBRIDGE SW7 – £9,500,000

THE BELVEDERE, CHELSEA HARBOUR SW10

HANS PLACE, KNIGHTSBRIDGE SW1X – £ 14500000

BERNERS STREET, FITZROVIA W1T – £1,995,000

IMPERIAL CRESCENT, IMPERIAL WHARF SW6 – £ 4,550,000

THE KNIGHTSBRIDGE, LONDON SW7 – £ 2,950,000