First-time landlords have more mortgage options
Obtaining a mortgage isn’t easy, but it is good to know there are many options available. If you are struggling to arrange a mortgage, you will be glad there are letting industry options available for you in the short-term, but this relies on landlords arranging their mortgage.
A recent study suggests the options for landlords are increasing when it comes to buy to let mortgages. It is believed that landlords can now select from more than 1,400 deals, with over 300 mortgage options being introduced in the past year.
The buy-to-let mortgage market has taken a big hit in the last few years with the Government phasing out mortgage interest tax relief, stricter lending rules being applied and many other challenges.
More mortgage options is great for the whole market
The Finance Expert at Moneyfacts.co.uk, Rachel Springall, said; “It’s encouraging to discover that first-time landlords have a huge choice of deals right now, particularly during a time of economic uncertainty. However, landlords will need to keep a close eye on their projected profit margins, especially as tax relief on mortgage interest will be scrapped in April 2020.”
There is no denying the current market is a challenging one for landlords. There is a significant level of demand for rental property, but landlords have a lot of costs to cover. A study by the lettings platform Howsy indicated that after an annual return of £13,000; the average landlord only enjoyed £2,000 profit. This is a difficult situation for many professionals, and many landlords will question whether the outcome is sufficient, considering the amount of work they put in.
Landlords need to consider their options
While market volatility is an issue for landlords to consider, the uncertainty in the market is likely to be of benefit for many landlords. After all, when there is uncertainty, people don’t want to buy property, and this leads to an increase in demand for rental opportunities. A landlord still has to buy property to ensure they are in a position to capitalise on this demand, but if they do have property, they are in a place where they can meet the needs of their audience.
Therefore, it is vital landlords speak with experts, and receive advice on what is the best way for them to move forward. Rachel Springall also said; “As it is a mere few months until tax reliefs are scrapped, it’s vital consumers seek independent advice to work out whether buy-to-let is a viable investment opportunity for them and to be made aware of upcoming changes facing the market.”
We know obtaining any type of mortgage is challenging. With so many potential homeowners struggling to get a mortgage to buy property, it is inevitable there is an opportunity for landlords to prosper in the market. However, landlords need to obtain a buy to let mortgage, and this isn’t always easy either.
If you need help in obtaining a mortgage, please contact us, and we will do our best to guide you today.