Potential changes are afoot in the Buy-to-Let market, which could see the ‘accidental landlord’ phenomenon become a thing of the past. The Times revealed this weekend that a new EU directive, due to be implemented in March 2016, could mean that lenders must make a distinction between deliberate investors and ‘consumer’ landlords – with the latter becoming a regulated part of the market. Critics argued that this would prove to be a complicated and unnecessary step, and may result in banks refusing to lend in this area.
Elsewhere in the rental market, the growth in the number of homeowners letting out their spare rooms via sites such as Airbnb has been significant over recent years, but the Sunday Times warned of the importance of notifying the taxman as well as insurance and mortgage providers, to avoid breaching terms and conditions.
The Mail on Sunday reported that, despite a recent drop in mortgage rates, the current crop of deals is unlikely to last long, and borrowers were advised to start shopping around before their current deal ends so that they can secure a rate in advance. The Independent highlighted research by the Building Societies Association, which showed that around a quarter of mortgage borrowers face financial trouble when rates do go up. Using an online calculator will help to see the impact of future increases in payments.
The midweek news contained reports that some lenders, including Barclays, HSBC and Coventry Building Society, are taking pension contributions into account when assessing affordability, and as a result some people are being advised to stop paying into their pensions until their mortgage has been approved. Experts warn that doing this could have an impact on retirement income, so borrowers are advised not to stop, but to shop around for the right lender. RBS/NatWest and Lloyds Banking Group are examples of lenders who do not deduct these contributions.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE