Faced by stricter borrowing regulations in the buy to let (BTL) market, many landlords and property investors are concerned for the future of their business. With the changes scheduled for the end of the month - a result of the Bank of England’s attempt to enforce tougher lending rules on those that own four or more properties - many buy to let landlords have been left wondering what effect the measures are likely to have how they can adapt to the new market conditions. Here we take a look at the BTL changes and consider what they mean for those involved in the property market.
Speaking in a short YouTube video, the Chancellor of the Exchequer, Phillip Hammond, announced that the Autumn Budget for 2017 is scheduled to be delivered on Wednesday the 22nd November. With the UK facing economic uncertainty and the prospect of challenging divorce negotiations with the EU, the Chancellor has decided to declare the nation’s major fiscal policies in Autumn for the first time in over 20 years.
As of late, I have encountered a couple of repeat questions from my clients, which is unsurprising given the number of changes that are constantly being implemented, so rather than provide you with an article, I have this time decided to answer a couple of the common questions that the contracting world seem to have around pensions and mortgages;
Through my limited company, I take a low salary and dividends. How much am I able to contribute to a pension as the company director?
What is a fixed rate mortgage?
A fixed rate mortgage is a finance plan that holds interest rates at a certain level for an agreed period of time.
For example, you may take out a fixed rate mortgage that freezes the interest you pay at 1% for 5 years. This means you’re tied into paying 1% interest on your mortgage, no matter what happens to interest rates in the wider economy.
In good news for those trying to get a foot on the property ladder, recent figures indicate that the average price paid by first time buyers dropped by 10% in August.
As the market reaches the end of the slow summer period and the industry looks forward to a rise both in sales and prices, statistics show that first time buyers are at an advantage, despite there being an estimated average of nine buyers chasing each available property.
While on the surface it may appear that the Bank of England has decided to continue holding interest rates at their all time low, many of those paying closer attention are convinced important changes to the Bank’s monetary policy are on the horizon.
AS THE NEW SCHOOL YEAR KICKS OFF, WE TAKE A LOOK AT THE GENERALLY ACCEPTED NOTION THAT SCHOOLS PLAY A KEY ROLE IN DECIDING LOCAL HOUSE PRICES.
Proximity to local school services is usually one of the first things to be included on an estate agent’s sales particulars, often appearing before other important details such as the number of bedrooms, bathrooms, and reception rooms.
According to recent figures, the remortgage market is witnessing a substantial increase in applications ahead of the biggest maturity period in five years, which will see over £35 billion worth of mortgages maturing during September and October.
And it doesn’t stop there, over the next 18 months, a total of £330 billion worth of products will reach maturity.
If you’re thinking of applying for a mortgage, there’s never been a better time to apply – with the rate of mortgage approvals secured by brokers now close to 90%.
Figures released by the Intermediary Mortgage Lenders Association (IMLA) have revealed that, during the second quarter of 2017, 88% of mortgage applications made through brokers led to offers.
On 31st December 2012, the Financial Advice industry was transformed with the introduction of the Retail Distribution Review or RDR for short. This came about because the regulator at the time, the Financial Services Authority, was concerned that certain practices within the industry were unconducive to providing the best possible outcomes for investors.