Buy-to-let Rates Down Again

Buy-to-Let landlords are enjoying a fall in mortgage rates, according to recent reports, particularly those looking for longer-term fixed rates. Research from the financial information provider has shown that not only have five-year fixed rate deals fallen to all-time lows, the average fixed rate at 75% loan-to-value (LTV) has fallen by 0.49% in just six months, dipping below 4.00% for the first time ever.

Good returns in the North:

Buy-to-let landlords seeking high rental yields should consider buying properties they can let to students in the North of England, research suggests. Of all the universities in England, Sunderland has been identified as offering the best rental yields, with low house prices - at an average of £70,200 – and moderate average rents producing a yield of 10.6%.

Buy-to-let still a good investment?

There was a rush of investors buying before the stamp duty surcharge on buy-to-let and second homes was enforced on April 1, so there is no doubt that a lot of buy-to-let investors bought forward their purchase plans to save the tax, which immediately adds three per cent to your purchase costs. The additional levy is indeed substantial – in real terms, had you bought a property at £180,000 at the beginning of the year you would have paid £1,100 in stamp duty. But now, with the additional SDLT, that jumps up to £6,500 – a massive difference of £5,400, which would take a long time to reap back from any rental income.

Landlords need advice:

For some landlords, the upcoming tax changes will mean a substantial reduction in net profit; some may even go from profit to loss. But it is not just higher-rate taxpayers that will be affected; some basic-rate taxpayers will lose out too because the changes could push them into the next tax bracket. For many landlords in this position, the solution has been to switch to a limited company structure that attracts corporation tax (which is lower and charged post-interest deduction) rather than income tax. Brokers that have not yet done so should take the time to understand the limited company buy-to-let structure; this is essential knowledge as the buy-to-let sector is changing rapidly.

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Buy-to-let Rates Down Again

Good returns in the North:

Buy-to-let still a good investment?

Landlords need advice:

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