Covid-19: Help with your mortgage

During these unprecedented times, many homeowners and buy to let landlords will have a fear of what will happen with their home or investment property if they cannot continue to make mortgage payments. Unlike the provisions to protect residential and commercial tenants from eviction, mortgage holidays from UK lenders are (as things stand) not enforced by law. The policy adopted by most lenders is the consequence of an agreement between the government and principle lenders, but, this scheme is voluntary and does not have to be supported by a lender…

Stamp duty change results in buy-to-let slump

Following the introduction of a stamp duty surcharge in April 2016 mortgage activity in the UK buy-to-let sector has plummeted. Changes implemented in April 2016 resulted in a 3% stamp duty surcharge on buy-to-let and second home purchases. This impelled a sudden surge in lending in February and March 2016 as landlords rushed through purchases to avoid the impending 3% increase in stamp duty tax. However, the spike in mortgage lending was short lived as a sudden and significant drop followed. The Council of Mortgage Lenders (CML) figures show that…

UK sees first time buyer Mortgages rise as buy-to-let slows

Conveyancers as well as Lenders across the nation have experienced the detrimental effects the new Stamp Duty Land Tax (SDLT) rules, which came into force from 1 April 2016, have had on the Buy-to-Let market. The new SDLT rules impose higher rates of SDLT on purchases of additional residential properties, the higher rates being 3% above the standard SDLT rates. This has deterred home owners from increasing their property portfolio in the UK as the rules also apply to properties owned abroad. One may argue the SDLT uplift on purchases…

The death of buy-to-let?

The rise of the buy-to-let market has become an increasingly lucrative business source for Britain’s 2 million buy-to-let investors. With average yields between 5-10%, you can see why. Many property owners see this as a vital source of income both for their present incomes and their future income via pension plans. They often collect this income on top of their salaries. However, new Government proposals set out by the chancellor, George Osborne, are poised to hit private landlords hard. The Government proposes dramatic tax increases on profits (and even on…

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