The life of the buy to let Landlord continues to become more complicated and expensive. In fact, the humble private buy-to-let Landlord might be forgiven for starting to think he’s under attack. Primarily because, in large part, he is!
As part of a portfolio of measures aimed at cooling demand from the buy-to-let market, the UK’s Government have recently introduced several fiscal measures aimed at achieving a reduction in those interested in entering the private buy-to-let market.
The most recent of these measures was announced last year with little fanfare but it’s quite possible that it will have a considerable effect on the market.
The new requirements will mean that landlords with more than one property in their portfolio must now provide details on all of the properties in their portfolio even when they are only mortgaging a single property. The shear administrative time (and therefore, cost) likely to be incurred by lenders (and therefore passed on to Landlords) could be significant. In fact, there is even talk of the lending market for the buy-to-let sector contracting, with some lenders either increasing fees or withdrawing from the market entirely.
These changes, announced in 2016, come into effect this year and come hot on the heels of a barrage of rule changes affecting how Landlords structure their investments.
From April 2017 landlords who own buy-to-lets in their own name have seen tax relief on mortgage interest tapered back from a maximum of 45 per cent and replaced with a flat 20 per cent tax credit by 2020. This, combined with the removal of the wear and tear allowance and the introduction of a 3 per cent stamp duty (SDLT) surcharge for buy-to-letters will, no doubt, have an affect on the sector and the market in general.
The new mortgage rules, part of set of measures laid out in September by the PRA which also toughened up rental income requirements, applies both to landlords who own properties in their own names and to landlords who own through a limited company.
If you have a portfolio of buy-to-let properties and you’re looking to buy more, or remortgage, it is important that you take proper advice sooner rather than later.
For more information on the mortgage application process contact us on 01628 507477.
Related articles:
Download our Free First Time Buyers Guide
Recent posts
The average age of a first-time buyer in the UK is two years older than 10 years ago. This is understandable with managing the cost-of-living and challenges within the economy such as high interest rates making it difficult to get onto the property ladder.
Delayed Start Mortgage from Skipton
9 days ago
Skipton Building Society launches ‘Delayed Start’ mortgage meaning first time buyers won’t be required to make repayments for the first three months.
According to a survey by Skipton, first time buyers who bought their home in the last five years found that in the first three months of living there, they were spending upwards of £30,000.
Gardening Tips for Beginners
14 days ago
If you have recently moved into a property with a garden that requires a little TLC, or you’d like to get on top of your current green space, check out our tips.
The Family-Backed Mortgage from NatWest
17 days ago
High street lender, NatWest, have launched a new product to help first-time buyers purchase a property with assistance from a family member or friend to get them on the property ladder sooner.
The Impact of Klarna on Mortgage Applications
18 days ago
‘Buy Now, Pay Later’ (BNPL) schemes, such as ‘Klarna’ are short-term loans that allow shoppers to make a purchase, but delay paying for it for an agreed amount of time.
Klarna is one of the most popular BNPL services with 18 million customers in the UK alone, and offers interest-free payment options which is appealing to shoppers. However, does it affect a mortgage application?
Buy to Let mortgages: what's happening?
23 days ago
We look at how to get the best Buy to Let mortgage rate, what's in store going forward, and options as a landlord with increasing costs.
UK mortgage rates following Trump’s Tariffs
14 Apr 2025
Throughout this past week, lenders have continued to reduce their mortgage rates giving borrowers in the UK some welcome news following the change in global tariffs under US President, Donald Trump.
Effective ways to relieve stress
14 Apr 2025
Did you know that buying a house, or relocating is in the top 10 most stressful life events?
Stress of course is an unavoidable part of life and there are many reasons why people experience stress, not just buying a house!
There are lots of effective ways to manage and reduce stress, check out our tips to help you.
More information
Trusted by
