There have been plenty of changes in the buy to let world over the last few years and for landlords the market is now very different to what it once was. Perhaps the biggest change to the sector came in last year when the roll out of a new system for tax relief came into effect which essentially limited the amount of relief a landlord could claim on the money paid as interest on their mortgage. That, coupled with the 3% surcharge in Stamp Duty on investment properties and second homes hit the sector hard, financially. But the latest round of regulation in the sector could cause problems in other areas – namely time.
The property investment world moves quickly and as such landlords often need fast decisions on finance applications. However, the latest rules to come into play from the Prudential Regulation Authority (PRA) have meant the application process for landlords with large portfolios can be quite cumbersome.
Under the new rules lenders must obtain the financial details of every property in a landlord’s portfolio when he or she applies for a new mortgages and doing so can take some time.
If you’re a landlord and you’re looking to increase your portfolio or remortgage your current properties call in and see us at We Know Mortgages and we’ll help you navigate the changes with as little disruption as possible.
A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage.
Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from taxation, are subject to change.
The Financial Conduct Authority does not regulate most forms of buy to let mortgage.