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

Selling up? It’s important to make your house as appealing as possible to potential buyers. Good decorating can help with first impressions, and increase the perceived value of your property.

With the cost of living affecting so many of us, we have made a list of budget-friendly activities and ideas for you.

Moving soon? It's never too early to get organised! Be prepared and avoid unwanted stress by checking out our list of tips to get you ready for moving day.

Inflation simply put, is the increase in the price of something over time. The Office for National Statistics (ONS) tracks the prices of hundreds of everyday items and these items are updated to reflect shopping trends.

We are often asked if it's good advice to consolidate “unsecured” debt (credit cards and loans etc) into your mortgage, the answer is, sometimes

When you’re looking to buy a home, and you own a car, you ideally want to know the rules on parking in the area. Parking rules can be confusing, even for the most experienced of drivers! This is why we have written this blog to help you.

There are several potential sources you can consider when it comes to getting together a deposit to buy a property. Providing proof of the source of your deposit is a key requirement in the application process and will need to be given to both the lender and the solicitor.

Mortgage Prisoners are people who are unable to switch mortgages to a better deal, despite being up-to-date with their mortgage payments.