Monday, 29 October 2012

Good news for landlords!

An announcement by the Financial Services Authority  is likely to further toughen lending criteria in a market already struggling. There's likely to be a an age-limit on mortgages, with lenders needing to show they've grounds to expect a loan to be fully paid off by the time a borrower's in his or her mid-70s. Interest-only mortgages without back-up from some kind of investment plan are likely to get the chop entirely. Self-employed borrowers will need to prove affordability with audited accounts. Mortgage brokers are already making noises about the effects on "struggling" homebuyers.

 Here at Ark we sympathise with people who want to get on the property ladder but it is good news for landlords.  If people with good incomes and credit scores can’t get mortgages then there are more quality prospective tenants to rent your property!

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