Anyone with a buy to let property with borrowing has been effected by these changes with immediate effect!
1. Your tax bill may have increased.
With the government not allowing you to offset your finance costs when working out your taxable allowances it is more than likely your tax bill will increase. The best way to offset this is making sure you have the best rates possible on all of your mortgages.
2. Interest rates have just increased
Interest rates increased from 0.25 - 0.5% on 2nd November. This means your mortgage may have increased if you are not on a fixed rate product. If you want to protect against this, then it is advisable to sit down and discuss your current situation with an professional adviser.
3. Changes to portfolio landlord borrowing
Lenders now view a landlord that currently owns 4 or more properties as a portfolio landlord. the Prudential Regulation Authority (PRA) have enforced this across the market. This means that lenders are forced to underwrite these customers more thoroughly. Ways this will effect landlords are as follows.
- May not have access to products they potentially did in the past, due to lenders pulling away from this market.
- Now buy to let investors may not be able to borrow as much as they potentially could previously.
- Could potentially have to supply a lot more paperwork.
It is important now more than ever, to sit down with an advisor and make sure your portfolio is in the best shape and as a landlord have planned for the future.
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