It is very clear to us that all the recent bad news regarding tax and interest rates has not in any shape or form dampened the landlord’s enthusiasm. In fact a recent poll showed that one in five landlords are looking to increase their portfolios within the next year. The demand for good quality rental property increased again last month, a local estate agent in Kent said “if the rental property is in good condition it won’t be on the market for long I can assure you”. Mortgage and re-mortgage business in this area is very active right now with investors in the main looking to re-mortgage to fix a rate for the longer term. The choice of buy-to-let mortgages is vast and still every week we are seeing new products coming onto the market. One of our advisers said “business in the re-mortgage department is really busy with the threat of a rate rise looming”. “It’s very obvious the investor is not too worried by the potential rate rise with fixed rate deals being very popular”. It is very evident many landlords are re-mortgaging for two reasons, the first being to fix a deal longer term and secondly to raise capital for deposits on new properties. This trend would most certainly follow the poll results. Way forward Landlords with one or multiple properties could well see this as a very good time to completely review their portfolio and mortgage plans. This could very well be the end of the “cheap mortgage” deal for the foreseeable future. Fixing a deal for the medium to long term now could assist with financial planning and profitability in the future and should be given consideration. Can we help? If you wish to review your current or future mortgage planning do call one of our fully qualified advisers. We look forward to helping you.
