“Lloyds boss says business case for buy-to-let ‘really difficult'”

Feb 9, 2023 | Housing market

Record low interest rates, soaring house prices and our love affair for property (we all understand a house, don’t we?) have led to the current proliferation of private, some might cruelly say amateur, landlords. But now interest rates are moving to more ‘normal’ levels, selling a house that you thought was OK for someone else to rent but you’d never want to live in, might not be so easy; and tightening standards mean that more than a lick of paint and a tidy-up of the garden is likely to be needed to keep the show on the road. The crunch point will come when fixed rates end and suddenly rents don’t cover the monthly payment, hence Lloyds CEO’s call for more competitive mortgage options. Which will be needed sooner rather than later, I fear.

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“First-time buyers’ borrowing power hit by affordability stress”

“First-time buyers’ borrowing power hit by affordability stress”

Lenders have to assess whether or not you can afford a mortgage, and in recent years this has meant ‘stress-testing’. That’s not just how you react to the spectre of 3 or 4 prime ministers in the space of less than a year or a commute on the M25; it’s whether you’d be able to make your monthly repayments if interest rates went up still further.