Is the buy to let mortgage sector set to remain strong?
Despite doom and gloom warnings for buy to let due to increased regulation, rising stamp duty and a loss of mortgage interest tax relief, many experts still expect the market to remain strong.
The predictions are for the market to be stifled in the short term, but long term prospects are good.
The Prudential Regulation Authority has proposed strengthening buy-to-let underwriting standards. They recommend a minimum level of stress testing, designed to make sure that landlords can afford to repay their loan when rates eventually rise.
Whether this will come to pass we will have to wait and see, but for the moment the sector remains strong.
As buy to let changes come into effect we may see lenders trying to attract more business by lowering their rates. With an ultra-low rate offer it may be possible for investors to claw back some of the extra costs they will now incur through buying.
For remortgaging landlords this could be hugely positive as they would be able to switch to a lower rate deal.
Please note:
Buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
- applicants who are letting to buy
will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.
If you are looking for a buy to let mortgage, or want mortgage advice please call us at Deal Direct.
We are fully qualified to offer mortgage advice, however we are not regulated to offer advice as to the suitability of property as an investment. For general financial advice you need to contact an IFA.
To discuss your buy to let mortgage options, call a Deal Direct adviser on 0800 048 8828.
