It’s no secret that the buy-to-let market has had a tough time of it lately. Those operating in the sector have every right to feel somewhat put upon. The Government seem to have targeted this market on more than one occasion lately. The landlords have remained resilient and are doing everything they can to cope with the situation. Signs are the majority of new and existing landlords are very positive about the long term future. Whilst times may be tough right now, lenders don’t seem to see it that way and they are not backing away from the challenge. Indeed, they are continuing to develop innovative and creative solutions for the borrower, which proves how important they see this market. So, with the landlord having to deal with the new proposed tax rules at least they have a good choice of low cost mortgages to choose from. The first charge buy-to-let mortgage market is still expanding on a weekly basis and the choices are numerous. Last year saw a number of lenders join the buy-to-let second charge market – allowing investors to borrow against a property to raise cash for further purchases. The second charge market is fairly new to buy-to-lets and it really does offer good value if utilised correctly. Rates of interest are reasonable and arranging a second charge normally is far quicker to complete. One of the best growth areas in the buy-to-let market unsurprisingly is the limited company buy-to-let mortgage. Landlords are turning to the limited company route due to the proposed new tax laws coming into force in 2017. The really good news is that lenders are without doubt responding to the landlords needs in this area. Interest rates have been significantly reduced and the range of mortgages available increases on a monthly basis.
