EU restriction on buy to let loans from 2016

[Rangeroverover]

My OH works for a national agent, she went to a seminar last night where head of barclays lending told them that due to new EU legislation as of 2016 buy to let loans not available unless you can show that you have the income (not rental income) to cover loans in case all your tenants default.

http://www.thisismoney.co.uk/money/mortgageshome/a...

Sounds like scare mongering but would make my life very tough when rolling over BTL loans as my job related income probably wouldn't be enough to cover all of them at once and I am only borrowed at about 50% loan to value on 4 properties.

Does anyone know if this is real?

[Leedssurveyor]

That must be BS.. how many professional landlords own income is profit from their BTL portfolio? I work with many BTL landlords and none of them have a 'job' so to speak so very little in terms of pay slip income.

[Leedssurveyor]

Have now read the article. And yes it is a load of BS. Will target those who become accidental landlord's only, and will only mean they have to move to a BTL mortgage as oppose to remaining on a home owner mortgage and changing terms etc. Not a big issue.

[Crusoe]

Plenty just put their old house up for rent and do a self assessment (or not) for the additional income. Forcing them to create a business account and put everything through the books isn't a bad idea. It shouldn't affect people already running a portfolio as a business.

"from 2016, banks may have to start refusing to lend to homeowners not intending to treat their buy-to-let portfolio as a business"