Government urged to give the Buy to Let market some “breathing room”

Tuesday, July 30th, 2019

According to a report released recently by the Intermediary Mortgage Lenders Association (IMLA), entitled “Buy to Let at a crossroads”, the buy to let industry has had to absorb some significant regulatory and taxation changes in recent years. 

Use a Specialist Buy to Let Mortgage Broker

Given these complex changes, landlords may choose to utilise the services of a specialist buy to let mortgage broker, such as Caboodle Finance, that can help them access products and facilities not readily available on the high street, often with tax guidance from their accountant (an approach that we thoroughly endorse).

The IMLA report also commented that the adverse effects of these rule changes could force some landlords to exit the market, potentially leading to a reduction in the supply of houses in the privately rented sector. Putting this in context, in 2018 the Ministry of Housing produced the “English Private Landlord Survey” which noted that professional landlords accounted for almost half of the properties rented through the private sector.

A Sharp Decline in Buy to Let Mortgage Debt

The report further noted that whilst the UK privately rented sector had grown from 9% in 1999 to around 20% in 2016, and notwithstanding an overall increase in the number of landlords with smaller portfolios, overall buy to let mortgage debt had declined sharply.

Kate Davies, executive director of IMLA commented, “… We are strong advocates of a fair market with a quality supply of homes… and urge a more moderate approach to ensure our private rental sector remains strong for the millions of renters who rely on it.”

Although there have been many factors in play (including, according to the IMLA report, a highly constricted mortgage market) one consequence of the recent regulatory and taxation changes is that for some, investment property may now be less financially attractive than was the case previously.

But, of course, there are likely to be some great opportunities too!

Accessing the Right Buy to Let Mortgage for you

Here at Caboodle Finance of Sutton Coldfield, Birmingham we work very hard to help our clients access the right buy to let mortgage for their individual circumstances. To hear more about how we do that, call us on 0121 308 9114 or alternatively, just click HERE to contact us via our website and one of our team will be in touch.

Fields marked with a * are required.

Click here to view our data protection policy

Click here to view our Customer Privacy Notice

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT. CONSOLIDATING DEBTS MAY INCREASE THE TERM AND TOTAL AMOUNT PAYABLE.

Your initial consultation is free and you are under no obligation to proceed with a mortgage we recommend. There will be a fee for mortgage advice. The exact fee will depend on your circumstances and may be reduced depending on the loan amount and any commission we receive from the lender. It is estimated that the fee will be £595, but it may range from £495 to 1% of the amount you borrow. The fee is only payable on completion and can normally be added to the mortgage. This will be discussed and agreed with you before you make an application. Please ask for a personalised illustration.

Secured loan rates from 3.95% APRC, although we have plans available up to 29.9% APRC which allow us to assist customers with the most severe credit problems. The overall cost for comparison is 7.65% APRC. For secured loans a broker fee up to 10% of the loan amount borrowed may be payable on successful completion. A lender fee may also apply. The actual APRC available will depend on your circumstances. All loans are subject to status. Please ask for a personalised illustration.

The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK.

Caboodle Financial Services Ltd, registered in England at SQ2 House, 240b Lichfield Road, Four Oaks, Sutton Coldfield, West Midlands B74 2UD (number 08044670).
Caboodle Financial Services Ltd is an appointed representative of PRIMIS Mortgage Network (PRIMIS), a trading name of Advance Mortgage Funding Ltd which is authorised and regulated by the Financial Conduct Authority. PRIMIS is only responsible for the service and quality of advice provided to you in relation to mortgages, protection insurance and general insurance products. Any other product or service offered by Caboodle Financial Services Ltd may not be the responsibility of PRIMIS and may also not be subject to regulation by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some forms of Buy to Let.

© 2017 Caboodle Financial Services Ltd