It is two years since the introduction of a stamp duty surcharge for landlords purchasing property, with many investors rushing to buy back in April 2016 to avoid having to pay the extra 3 per cent.
Many of these landlords will have taken out two-year deals and be coming up to remortgage only to find that lenders have tightened their criteria, with more restrictive rent to borrowing rates.
And new rules introduced at the end of September 2017 – requiring lenders to apply more detailed underwriting principles when evaluating portfolio business from landlords with four or more mortgaged properties – mean there are now fewer lenders to choose from.
It is no surprise that buy-to-let remortgaging rose by 20.5 per cent in February to 14,100, according to UK Finance, while new purchases of buy-to-let properties fell by 8.8 per cent year-on-year. As far as many potential new landlords are concerned, the gloss has come off the sector. Changes to mortgage interest tax relief are starting to filter through, making it harder to get the numbers to add up. If you add in a raft of other new legal responsibilities, and the threat of an interest rate rise as early as next month, making sure your portfolio works as hard as it possibly can, is crucial.
Refinancing is worth a look, making sure you are not paying more than you need to. While there is less choice available for portfolio landlords, we can help you find the most competitive terms – from specialist lenders if required – and make the whole process easier.