Buy to Let Mortgage Lending Strong in Spite of New Tax
Mortgage lending in regard to buy to let properties has not only increased in volume in recent years, but it has remained strong even in the wake of the new tax law which was introduced in April of last year. This new tax surcharge was expected to impact buy to let negatively, but had no real influence. The timing of the new tax was also anything buy perfect as the historic Brexit was still fresh in the minds of many going forward.
The buy to let sector has always had an appeal due to its potential for income and low void periods. And since pensions are no longer a legitimate source of income for retirement, the sector just keeps growing.
According to the Council of Mortgage Lenders, the total volume of buy to let mortgages increased 3% last year when compared to figures of 2015. Also, the total value of buy to let mortgage lending increased 7% last year compared to figures from the previous year.
The future of buy to let mortgage lending appears strong, according to many close to the UK housing market.
Rachel Springall of Moneyfacts commented on the strength of the buy to let market, saying: “The buy-to-let market is booming. With over 100 more deals available compared to a year ago and the average fixed rate on buy-to-let falling from 3.65% to 3.34% in 12 months, it’s easy to see how lenders have an appetite for new business.”
Springall suggests owners look into a new mortgage deal due to the low level of rates currently available.