Are buy to let mortgage applicants unprepared?

The buy to let landscape is constantly changing. These days, one of the simplest aspects of buy to let ownership is arguably getting a buy to let mortgage (well, if you get a buy to let mortgage with us, that is).

The problem is that ever-changing legislation, regulation and guidance is placing a greater onus on the landlord.

Take the Energy Performance Certificate (EPC), for example. Since April 2018, all privately rented properties have been required to hold an EPC with a minimum rating of E (with A being the best rating, and G the worst). However, things are about to change.

From 2025, the minimum EPC rating for new leases will be C, making it illegal for buy to let landlords to rent out their property if they have not achieved this standard.

Of course, remedial work to help buy to let property owners get up to the required standard can be undertaken – however, a survey commissioned by Shawbrook Bank revealed that 36% of respondents say their properties were built pre-1940, which means that getting them up to a C-rating may require significant work (and cost).

According to one London mortgage broker, the cost of upgrading a property from a D to C rating is £6,155 – and that’s for a mid-sized house. For a large family detached home the cost can reach as much as £12,540.

The bank’s research also revealed that 15% of respondents have no knowledge of the upcoming changes. So, what does this mean for those wishing to become a buy to let landlord?

It means that they need to factor this change – and potential cost – in before applying for a buy to let mortgage. As a Guildford buy to let mortgage broker we’re duty bound to stay abreast of key changes within the buy to let marketplace, which means that we’re also well placed to advise our clients during the initial buy to let mortgage consultation.

Getting a buy to let mortgage is still a great way in which to build a portfolio of properties and generate a rental income for many years to come. However, it just needs to be carefully considered at the buy to let mortgage application stage, which is something that we can help you with.

If you’re considering a buy to let mortgage and would like professional buy to let mortgage advice, contact one of our Guildford buy to let mortgage advisers on 01483 238280 or by e-mailing info@complete-mortgages.co.uk.