The buy to let investment market is becoming more complex and landlords need the help and expertise of mortgage and bridging brokers.
The Intermediary Mortgage Lenders Associations has predicted that soon mortgage lending will be at its highest level since 2007. Part of the rise in lending activity is due to specialist lenders who can handle more complex commercial mortgage applications.
In April there were changes to the tax system that meant that landlords on higher rate tax bands could claim less tax relief on commercial mortgage interest. This has caused landlords to adapt a number of strategies to save money. Some landlords have transferred property to their partners who are on lower tax bands. Others have formed limited companies that own their properties.
Many landlords have diversified by purchasing semi-commercial and commercial properties that are not affected by the buy to let tax changes.
When transferring property ownership landlords will need to apply for a new mortgage finance. Landlords with no experience of commercial property require help in applying for a commercial mortgage. Many of these situations can be complex and need a broker who is an expert in all financing options. The broker should have a good relationship with all the alternative lenders and be able to match the borrower to the best commercial mortgage provider.
A broker can discuss all the cost saving strategies with landlords. A complex market is a challenge to brokers, but good ones will support their clients and provide expert financial assistance.