The Mortgage Lender has unveiled partnerships with SimplyBiz Mortgages!

Do you already own a property that you rent out or are considering becoming a landlord and purchasing your first buy to let (BTL) property? Either way there are many changes within the market that you need to be aware of for the future. Both the Chancellor of the Exchequer and the Prudential Regulatory Authority (PRA) have announced changes that will effect both the way a buy to let mortgage is underwritten and the tax you will pay on the rental of the property.

The buy to let market has grown considerably over the last 20 years as consumers have looked at alternative ways to invest their money away from the traditional vehicles of the stock market and through a pension. Others have just used it as a way to spread their investment portfolio. Buy to let can be used for either income (from the monthly rent) or for capital growth (house price increases) or hopefully both.

Moving forward some of the tax benefits will be diminished but not fully removed. Also the PRA have proposed that the underwriting of the mortgage looks similar in some instances a normal residential mortgage.

We have also seen growth in the different types of BTL mortgages available. We still have the standard BTL for a single person, couple or family looking to rent a house or flat. There are also mortgages available for landlords who wish the rent their property under a HMO (House of Multiple Occupancy) for students etc and mortgages are now available for properties that may need initial work prior to a landlord renting them out.

Added to this landlords can buy properties as an individual or via a limited company structure. We have also seen a number of new lenders offer BTL mortgages which has increased consumer choice. With so much changing in the market using a mortgage broker or IFA will help you be best placed to secure the best product for your circumstances. We would be delighted to help you with this.