Mortgage bonanza for many including landlords

Bank of England governor Mark Carney's warnings of a potential property price plunge and general anxiety still lingering around Brexit, you could be forgiven for feeling negative about the current state of the property market.

But a quick look at the numbers will show there's hardly ever been a better time to be hunting for a mortgage - whether you're a first-time buyer, re-mortgaging, or looking to get into buy-to-let - rates have scarcely ever been lower.

Not only are rates dropping, lenders are also expanding their product ranges into areas that they previously might not have considered.

Bank of England rates data shows the average buy-to-let mortgage rate at 75% loan-to-value has also plummeted to just 2.27% - the lowest since records began in 2012.

The buy-to-let sector has been battered in recent years as tax relief on mortgage interest is withdrawn and replaced with a tax credit. On top of this landlords now pay tax on their revenue rather than profit after mortgage costs.

Landlords see a future

Britain’s buy-to-let landlords are divided over their future, following a raft of tax and market changes, according to recent research.

It found that three in five buy-to-let investors (56%) want to keep or buy more rental properties, although two in five (44%) are looking to sell. As the market consolidates, landlords are polarized across the country, with tough decisions to make on whether to stay or leave the sector.

Nearly a quarter of those looking to sell up blame falling yields (24%) and tax changes (23%), while a fifth blame cooling house prices (19%). Three in five (60%) say that property management had become a burden.

The British public still have an incessant love affair with bricks and mortar – but the hassle and cost of buy-to-let is a source of growing frustration, and some landlords may find that their once reliable day-to-day income is becoming harder and harder to come by.

But in reality this isn’t the case across all parts of the market, with money still to be made from the right property in the right region.

Landlords, be sure to check your mortgage deal

The latest data and analysis highlighted failing to switch mortgage and lapsing onto their lender’s Standard Variable Rate (SVR) has seen the average landlord hit with £2600 a year in extra interest.

According to the study, which looked at 16 major UK lenders, analysed the jump in interest charges from each provider’s best two-year fixed rate deal to their associated SVR, which a borrower is typically transferred to once their introductory period comes to an end.

Across the UK there are far too many borrowers currently on an SVR, who could collectively save £5.3 billion a year by switching!

Company buy-to-let mortgages on the up