Landlords face many challenges in 2017. Costs have risen due to the reduction of commercial mortgage interest payment tax relief, and stricter mortgage affordability criteria for landlords with four or more properties will be in force in September 2017.
Any reductions in landlords’ costs is welcome. Moneyfacts reports that the interest rate for a two-year buy-to-let mortgage has dropped by 0.31% over the last year. Last July, landlords could obtain a fixed-rate buy-to-let mortgage for 3.32% interest. This went down to 2.92% at the start of 2017 and now stands at 2.91%.
There have also been increases in the number of commercial buy-to-let mortgage products. In January 2017, there were around 1,400 buy-to-let financial products, and now there are over 1,600. This means that commercial mortgage brokers have access to a wide range of financial loans and can provide the best loan for a borrower’s individual needs.
Charlotte Nelson of Moneyfacts said:
“The buy to let market has seen turbulent times with significant tax changes, tougher affordability rules, and more changes to come into force in September. Many thought the BTL mortgage market might show signs of strain. And yet, rates have continued on a downward path.”
Despite rising costs due to government changes, the data published by Moneyfacts demonstrates that the buy-to-let market remains a buoyant one for landlords.