A buy to let mortgage is a loan for purchasing (or refinancing) residential property which is then let to individuals.
Recent legislation changes have made lending criteria for buy-to-let mortgages considerably more stringent.
Increased SDLT and a phased removal of a considerable income tax benefit for BTL Landlords (where the cost of mortgage interest will no longer be tax deductible) has seen a general decline in the popularity of BTL mortgages in recent months.
Increasingly, BTL investors are acquiring premises through a limited company, as the scheme of taxation for corporates is seen by many as more favourable when compared to the new individual tax regime.
The Property market in London, which has historically been the mecca for BTL property investors has slowed down since the Brexit vote and capital values in the Capital have been on a steady decline since 2016. Other parts of the country, however, seem to be more buoyant.
The focus of BTL investors remaining in London seems to be moving away from Capital Values (bigger gains are now seen to be available elsewhere in the country) and more towards yields.
This has seen a big shift from typical BTL investment away from typical houses and flats and more towards potentially higher yield investments, such as Student Lets and HMOs.
It may be that the appetite for capital returns in London may return when the market is perceived to have bottomed out and there are some bargains to be had.
In the meantime we expect to see a continued pattern of fewer BTL deals being done particularly in London, and increased proportion of those being acquired through corporate vehicles. For the time being this pattern shows no sign of abating.
The fact remains, however, that BTL Mortgages continue to make up a substantial part of the UK Property Finance Landscape. BTLs continue to be the right investment for many who have done the maths and are satisfied that the figures still “stack up”.
For those parties, whether they are buying through as an individual or a corporate vehicle, if you need a mortgage you need the right lawyer in your corner who has dealt with the process many, many times before
Why choose Attwells
For Our Speed and Diligence: In a competitive market the speed and diligence of your lawyer is key. With Attwells, you can rest assured that no matter what the transaction entails, your lawyers will be proactive in pushing your matter forward to an efficient and satisfactory conclusion.
For Our Competitive Fixed Fees: Attwells offer competitive fixed fees on all of our Property Finance services, so that from day one, you will know how much your legal costs will affect your bottom line. This is all part of our commitment to transparent and fair pricing.
For Our Proactive Communication: Is there anything more frustrating than not knowing the status of your matter? Or worse still, not being able to get in contact with your lawyer for an answer? At Attwells we understand that communication with the client and their professional team is critical, which is why we will give you regular updates without being prompted. You will always be given the direct line to your lawyer, so you can spend your day on running your business, rather than waiting on hold.
We use cutting edge Case Management Software to ensure that staff absences (either through holiday or unplanned) are always covered by colleagues within the department, so you can be sure that your matter will not be delayed by matters outside of your control.
For Our Expertise: We have completed hundreds of BTL Mortgages over the years so we can say with some confidence that your matter is unlikely to be anything we haven’t seen and dealt with many, many times before.