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Mortgage concept. Financial agent complete wooden model of the house with last piece with text mortgage. Wide banner composition with bokeh background.

UK property investors are approaching the market with greater caution at present, which has had impact on buy-to-let mortgage rates. If you’re a small-scale landlord or just starting out, you may well enjoy lower rates, especially if you’ve got a good amount of equity behind you. Here’s more information.

What the Experts are Saying

Experts predict that buy-to-let mortgage brokers will be doing battle to reignite interest in their products – which may prove beneficial for some landlords. Last year’s seismic changes (such as the Stamp Duty rise and other regulatory adjustments) have made buy-to-let property investors warier about purchasing – and mortgage brokers are now working hard to entice these buyers back to the market.

This is particularly the case for landlords with plenty of equity – who are considered lower risk.

Knock-on Effect of Lending Laws

There’s even more pressure on mortgage brokers than ever before, thanks to the Bank of England’s new tougher lending rules, which came into effect on 1st January 2017. Now, buy-to-let mortgages will only be given if the landlord is able to show that their rental income will cover the mortgage payments by 145% (if their mortgage rate rose as high as 5.5%). Previously, most mortgage lenders applied a 125% rental coverage.

With fewer landlords able to prove this level of rental income, mortgage brokers are experiencing reduced interest in their products. Add this to the changes to tax relief (being introduced in April) – and you’ve got a problematic situation for both buy-to-let mortgage suppliers and landlords alike.

What’s Likely to Happen?

Mortgage brokers are likely to respond to the changes by making their rates more competitive, in a bid to attract landlords. The great news is, if you’ve got considerable equity, you’re in a powerful position to shop around for the best offer.

If you haven’t got as much equity to invest, you should still notice the benefits of the mortgage-lending war – but you might not enjoy such a wide choice of products.

How to Secure a Buy-to-Let Mortgage

If you’re serious about investing in property in the UK, follow the following steps:

  • Invest as much equity as you possibly can, to secure the best possible mortgage deal.

 

  • Do your research. Find out what areas offer great rental yield and solid capital returns. If you’re not sure about this, talk to a property investment agent or attend a property seminar.

 

  • Buy at a property auction. Shop around for deals – remember, the cheaper you get the house or apartment for, the less you’ll have to pay in your monthly mortgage. Buying a house at auction is a great way to save thousands off the market price.

The Buy2Let Shop

If you’d like more information about investing in property in the UK, or you’re looking for a buy-to-let property for sale, talk to The Buy2Let Shop team today. We’re property investment agents and we’re here to help you find the ideal house or apartment, at the right price.

From assistance with buying a house at auction to hosting regular property seminars, we offer a range of services designed to empower your UK property investments. To find out more, simply visit Buy Dapoxetine Europe website today.

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