Our expert views and commentary on what’s happening in the world of mortgages and sometimes beyond, along with our regular summary of what the papers say.
The Times focused on the new Buy to Let rules from the Prudential Regulation Authority (PRA) that will come into force this October. They will affect ‘portfolio landlords’ (those with 4 or more mortgaged properties). Previously, lenders might assess a new mortgage in isolation but will now have to undertake a review of all the client’s assets, liability, tax position, business plan and exit strategy. Buy to Let Mortgage lenders are beginning to announce how they will implement these changes,...
Less than 2m interest-only mortgages across the UK remain outstanding, according to the Council of Mortgage Lenders (CML), down from 3.2m in 2012. There are currently 1.9m interest-only loans, with a third of these due to mature in the 2030s. With this type of mortgage, as the name suggests, you only repay the interest on the amount you’ve borrowed each month. The capital must be repaid when the mortgage term ends. Millions of borrowers took out this type of...
As announced in the Budget, mortgage interest rate relief is going to be limited to the basic 20% income tax rate: higher and top rate tax payers no longer get full relief.The government has now published the detail of how the change will be phased in here which says in 2017 to 2018 the deduction from property income (as is currently allowed) will be restricted to 75% of finance costs, with the remaining 25% being available as a basic rate ta...
Buy to let applicants are subject to different criteria than someone looking for a residential mortgage. For example, you may need a larger deposit and a higher annual salary, and that’s just the beginning.However for those who find the right mix of property, finance and tenant a buy to let property can provide you with a steady source of income. The average UK rent yield is over 5%, which makes buy to let appear an attractive options with saving...