Mortgage lender thinks Buy-to-Let is still an attractive investment compared to the returns available on other forms of savings and investment.
The buy-to-let sector was shocked when the previous Chancellor George Osborne introduced some swinging tax measures last year, including a 3% stamp duty levy, a scrapping of the generous wear and tear allowance, and perhaps most worrying to some, the removal over a period of four years of landlords’ mortgage interest tax relief.
But this mortgage lender says that based on its own lending activity, investors have continued to be attracted by the buy-to-let market, as they find returns regularly outperform other investments.
“We have introduced a new five-year fixed buy-to-let mortgage to meet the demand from this growing market, giving landlords and property investors the opportunity to fix their costs,”, says Together CEO, Marc Goldberg.
“In addition, the maximum loan size has been increased to £500k, which is great news for investors, given the continuing rise of house prices, with London averages now standing at £474,736”.
Mr Goldberg, explains:
“We’re constantly developing and improving our product offering in line with customers’ needs and feedback from our brokers. Buy-to-let has proved to be a resilient sector this year, despite the tax changes introduced by the Government. In fact, according to one recent industry report, buy-to-let saw a 19% surge in September.
“Buy-to-let lending continues to perform well for us here at Together, and we’ve been able to grow whilst maintaining a high quality customer base. Given this growth, we want to ensure that we offer a variety of products to meet the continued demand. Our new fixed-rate product, as well as bigger loan sizes, will help us deliver more funding to property investors, through our network of broker partners.
“We offer both interest-only and repayment options, with loan-to-values of up to 75%, and we’ll accept projected rental incomes, so landlords don’t need to have a tenancy already in place to secure the funding needed. We also lend to limited companies, and have seen an increase in applications from limited companies for buy-to-let funding, as a result of the various tax hikes.”
Buy-to-Let still attractive investment https://t.co/FMDDwggXYZ
— LandlordZONE (@LandlordZONE) October 26, 2016