Notes: This is not an exhaustive list of buy to let deals but a selection of some of the best offers available. Mortgages are subject to availability, which means lenders can change rates and terms at short notice. Inclusion in this table does not represent advice nor an endorsement of the product. Always take independent professional advice before proceeding with a mortgage.
First time landlords have lost another lender as Virgin Money pulled out of the market.
The move follows stricter lending guidelines for new buy to let borrowers in the wake of a European Directive on mortgage lending.
Although the directive tackled problems in the residential market, an add-on ordered lenders to take more care over lending to first time landlords because of ‘gaming’.
This is a term applied to taking out a buy to let mortgage as affordability rules are laxer than those for residential mortgages – and then moving into the house as a main home.
Many mainstream lenders have dropped out of the market due to the risk of gaming.
A spokesman for Virgin Money said: “We made the changes to ensure lending criteria remained appropriate and not out of line with the wider market.
“The changes are designed to ensure that we continue to lend within our buy-to-let risk appetite. We also think that buy-to-let customers should have experience of owning a property previously.”
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