The Property Podcast ASK518: Help! Lenders are declining me PLUS: Why interest-only mortgages?
Apr 7, 2026
They tackle a baffling affordability rejection after capital raising and explain why portfolio landlords face tougher lending checks. They debate why many buy-to-let investors choose interest-only mortgages for cash flow and stress-test relief. They also discuss how inflation can quietly reduce real debt while boosting asset and rent values.
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Investor Irfan Hit By Affordability Rejection During Development
- Irfan described investing for ten years and applying to release equity during a ground-up development, then facing an affordability rejection.
- He said lenders ran affordability despite 75% LTV and ignored PAYE income explanations, leaving him worried about being asset rich and cash poor.
Prepare For Stricter Checks When Raising Capital
- Do expect extra lender scrutiny when raising capital against an existing portfolio because lenders assess portfolio-wide affordability for four or more properties.
- Rob Dix warns capital raising and funding developments trigger deeper checks and high street lenders often focus more on personal income than specialist lenders.
Stop Expanding To Reduce Leverage Before Retirement
- Do consider pausing expansion once you hit your target so you can reduce leverage by paying down mortgages or stop borrowing further.
- Rob Dix suggests future growth reduces effective LTV and you can even start repaying mortgages to lower risk before retirement.