What's so different? In the past borrowing on income-producing property has been viewed by lenders as a commercial proposition. Because of this mortgages on property for let, even for private individuals, have attracted higher rates of interest than the standard mortgages offered to owner-occupiers. In addition, rental income has usually been disallowed when assessing a borrowers ability to meet mortgage payments.
Today, the view of many lenders and all other housing professionals is that growth in the private rented sector should be encouraged. Not only does it lag well behind the private rental sectors of all the other advanced economies, the lack of choice between renting and buying is bad for the economy and a contributory factor to the booms and busts of the housing market over the past few decades.
The change in lending criteria and the lowering of interest rates for private investors has only been made possible by the strong presence of professional letting agents operating within the lettings market.
