Investors’ borrowing is now based upon expected rental cover of 125 per cent of the monthly mortgage repayment for all products, with the exception of five year fixed rates.
On fixed deals of five years and over, the required rental cover will reduce to 120 per cent of monthly mortgage payment.
Andrew Moss, buy-to-let product manager for Mortgage Express, said: “The buy-to-let market has evolved considerably since its inception. Continuing product innovation has played a major part in making bricks and mortar the popular and accesible investment vehicle it is today.
At 125 per cent cover, monthly mortgage payments are covered for the equivalent of three months per annum and this compares to average rental void periods of only 27 days per annum as reported by the Association of residential Lettings Agents (ARLA).
Moss said: “We strive to make sure that our product and services meet the needs of both our brokers and borrowers whilst reflecting what is happening in the market. Ensuring Mortgage Express maintains its position as the number one buy-to-let lender in the UK.”
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