It pays to get the correct advice

Landlords are being urged to seek specialist mortgage advice as many will be considering re-mortgaging options due to a high number of fixed deals coming to maturity.

According to the latest figures, landlords borrowed £7.1 billion in March 2016, an 87% month-on-month increase and a 163% year-on-year rise. This accounted for 47,000 loans in total, an 90% increase on the previous month and 147% more than for March 2015.

The activity in March 2016 was ‘distorted’ due to brokers rushing to beat the 3% stamp levy on second homes that was effective from April, alongside the seasonal increase in activity before Easter.

Most of these deals were completed on two-year terms – now, landlords will be weighing up their re-mortgage options, rather than have their monthly payments revert to a higher standard rate.

Now, more than ever it is vital for landlord investors to use the insights of a specialist broker to set themselves up for success. With interest rates still currently low, landlords may be tempted to stick to their previous lender or go to their personal bank. This could be a wrong move as the options open now are vast and selecting the right move is vital for long-term profitability.

The lending environment has changed radically since April 2016. The introduction of new Prudential Regulation Authority rules in 2017 has resulted in much stricter underwriting from a sizeable proportion of mortgage lenders, both for individual investors and especially portfolio landlords.

Specialist broker firms work with lenders from across the marketplace and can recommend a product that meets the current and overarching investment objectives that landlords may have. They can also head off potential obstacles, potentially saving the borrower both time and money.

If you would like to discuss your new or re-mortgage, please make contact and one of our advisers will be happy to help.