If you’re an owner of a rental property, or are looking to purchase one, you will probably be aware that this year has been an uncertain one for the Buy-to-Let market. Higher interest and stress rates have affected those on tracker or discounted rates, and those coming to the end of their existing deals, and reduced profitability, even in cases where you may have been able to increase rents. You may be struggling to fit with a lender at all due to stress rates. Then there are the impending EPC regulations and expected restrictions on holiday let properties to contend with.
However, there are many reasons to be positive and ways we can help!
Firstly, lenders are beginning to reduce interest rates and stress rates and we are bang up to date with the latest rates available. Lenders are also innovating their products as they do want to lend. For example, some allow “top slicing”, meaning they will take your personal income into account for affordability, allowing them to lend more. We are whole of market, meaning we can source the cheapest deal to suit your circumstances from a huge range of lenders, however complex they may be. Many of these options aren’t available to customers directly.
Secondly, demand for rental properties remains extremely high as people struggle to get onto the housing ladder themselves, which in turn is increasing rental values. As accidental and older landlords may look to sell up, there will potentially be profitable properties available to purchase.
There has been huge growth in the movement away from single ASTs to other options such as HMO’s, Multi-Unit Freehold Blocks and short term lets E.g., AirBnB’s. Again, we can source suitable lenders who allow for this type of letting.
Making homes more energy efficient is a key part of the Government’s plans to reach net zero by 2050, and landlords are front and centre of this drive. It is expected (but not yet law) that new regulation will come in to ensure properties have an EPC rating of C or above for new tenancies from 2025 and for all tenancies by April 2028. Currently, the rating must be E or above. In theory, improving efficiency sounds great, and could cut your bills ongoing. In practice, this may be daunting, particularly if your property falls well short of requirements. We can guide you on how to find out your rating, how to obtain a new certificate and with ideas of how to improve the rating of your property/ies. If needed, we can then assist with raising funds to carry out improvements. This could be in the form of a remortgage, further advance, second charge, or perhaps a bridging loan.
The importance of speaking with an experienced mortgage adviser can’t be underestimated! We can review your portfolio and future plans as a whole to ensure you receive the best advice, and of course, can help you if you are just starting out and looking to buy your first rental property. If you are looking to incorporate into a Limited Company or back into a personal name, we can also help with this. Don’t forget, you should always take independent tax advice before deciding how to proceed.
Feel free to get in touch with us at Ingard on 01702 538800 or email enquiries@ingard.co.uk
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
