According to the Financial Advisers Confidence Tracking Index (FACT) report, confidence amongst buy to let mortgage lenders is at its highest level since 2015. Buy to let mortgages rose by 1% in the third quarter of 2017.
There have been reports in the press over the last 18 months that many buy to let landlords are leaving the market because of higher stamp duty costs and the reduction of tax relief on commercial mortgage interest. payments. There was evidence of this in 2016 as buy to let property buying decreased, but coming to the end of 2017 the figures support the view that the market is showing signs of recovery.
In September new regulations made it more difficult for landlords with four or more mortgaged properties to obtain new commercial mortgages. Some landlords have formed limited companies to save tax and make it easier to get mortgages.
The FACT figures show that landlords have not been put off by changes to buy to let regulations. There is optimism for 2018 with the buy to let housing market expected to be buoyant.
The buy to let market has had a challenging time over the past few years, but the latest figures suggest that the market is now stabilising. Brokers are experiencing steady levels of mortgage applications and remortgaging activity.
There are many buy to let mortgage deals to choose from. A mortgage broker can help landlords find the best deals to finance the purchase of privately rented accommodation.