Landlords - are you aware of dramatic changes to buy to let mortgages?

According to market analysts, a worrying number of landlords are unaware of the dramatic changes involving buy to let mortgages this year.

As from January 1st 2017, lenders were compelled to tighten their calculations regarding buy to let mortgage affordability. This is because of the reduction in tax relief for landlords who borrow personally. The stress tests lenders now carry out, are designed to make sure that, taking the changes into account, landlords can still make at least a 25% profit.

Despite media coverage of these changes, some landlords remain totally unaware of the revised checks and, therefore, whether they may be affected or not.

If you are a landlord and you haven’t yet found out about the new affordability regulations and/or the reduction in tax relief, don’t wait any longer as your profitability may be impacted.

To examine your options in full, speak to expert buy to let mortgage broker, Deal Direct.

Please note that Deal Direct are regulated to offer independent mortgage advice; however, we are not regulated to offer general financial advice. To discuss the suitability of property as an investment, the advice is to contact an independent financial adviser.

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.

To find out how the modifications in buy to let mortgages will affect you, call 0800 048 8828 now.