Mortgage Payment Holidays & Bounce Back Loans

We are often asked what lenders’ attitudes are to buy to let investors who have taken a Bounce Back Loan or Mortgage Payment Holiday.

Many people still wonder whether they can get a buy to let mortgage if they’ve used either of these emergency financial measures.

It is true that the borrowers applying for payment deferrals suggested that their financial situations were not as robust as they needed to be, despite affordability calculations, and this meant lenders had justifiable concerns. 

However it has now been over a year since these measures were launched and generally speaking, most lenders are now more accepting of those who have utilised these concessions. Particularly if they have begun making monthly repayments again. 

Applications for Bounce Back Loans closed on 31st March 2021, like MPHs, they have become less of a concern. However, if you’re applying through a limited or trading company for a buy to let mortgage, lenders will ask whether you’ve taken a BBL. Furthermore, they are still performing more financial checks than they would have pre-COVID, so be prepared.

If you did take a Bounce Back loan, lenders will want to see how the pandemic has impacted your business and how it is now recovering to a profitable level. Expect lots of questions and have your accounts ready, but rest assured, these loans will not completely exclude you from mortgage finance.
If you have questions about how these loans might have impacted your future borrowing or would like to start a new mortgage application, contact our senior broker, Danny O’Keeffe on 0208 364 3444 or click the request a call back button below to book a time slot. 

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