Buy to Let mortgage lending continues to boom

According to MoneyFacts, there are now more than 1,000 Buy to Let mortgages available on the market. This is for the first time since April 2008.

The company also found that the average Buy to Let variable mortgage rate had decreased from 6.66% to 3.6% over the period of seven years. Likewise, the average buy to let fixed-rate mortgage has fallen from 7.34% to 3.8% according to Moneyfacts*.

What this means for Buy to Let investors

Adam Nanson, Managing Director of Your Mortgage Expert comments:

“The interest in Buy to Let mortgages can probably be attributed to a number of things. Firstly, the rates are still low which means savvy investors are locking in good deals while they can. Secondly, with the changes to pension freedoms introduced earlier this year, many savers are choosing to invest in properties which can generate higher returns than pensions.

“The increased interest could also be due to investors wanting to take advantage of current tax efficiencies while they last. As, from 2020, the Chancellor plans to change how higher rate taxpayers deduct the cost of mortgage interest from their rental income**.

“As a result, it could be more difficult for people to purchase a buy to let in the future. So it might be prudent for Buy to Let investors to take advantage of the tax efficiencies low interest rates while they lasts.”

How Your Mortgage Expert can help

Adam continues: “We have experience working with landlords who have simple portfolios to those that are more extensive and complex.
“We understand that arranging finances for a portfolio of properties can get complicated. We also know that some lenders put restrictions in place for Buy to Let borrowers. As such, we can help you overcome some of the problems you might encounter.

“We have access to the whole of market mortgage deals, some of which are not available directly.”

To find out how Your Mortgage Expert can help you maximise the growth from your investment, contact Adam on 01722 322683. We don’t charge for an initial consultation, so by speaking with us, you won’t be under any obligation. To find out more about our services and how we operate, visit our about us section.

* Source: MoneyFacts, 25th August 2015

** To read more about this, view our earlier article on the 2015 budget

The information contained within this article was correct at the time of publication. It is intended for information only and should not be used as a basis for purchasing any products. TenetLime cannot be held responsible for information that was correct at the time but subsequently changes or goes out of date due to changes in legistation. For further information, contact Your Mortgage Expert on 01722 322683.

Most forms of Buy to Let mortgage are not regulated by the Financial Conduct Authority.

Please be aware that from 6 April 2016 higher rates of Stamp Duty Land Tax will be applied to the purchase of additional residential and non-residential properties. For further information visit the Government website on the consultation. Please note, by clicking on the link you will be departing from the regulated site of Your Mortgage Expert Ltd. Neither Your Mortgage Expert Ltd nor TenetLime are responsible for the accuracy of the information contained within the non-regulated site.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. SECURING SHORT TERM DEBTS AGAINST YOUR HOME COULD INCREASE THE TERM OVER WHICH THEY ARE PAID AND THEREFORE INCREASE THE OVERALL AMOUNT PAYABLE. YOU MAY HAVE TO PAY AN EARLY REPAYMENT CHARGE TO YOUR EXISTING LENDER IF YOU REMORTGAGE.