The buy-to-let market has experienced the implementation of significant tax-related changes. The changes have created problems mostly for individual landlords.
It has also reduced the introduction of new speculative landlords to the property market. Individuals are now discouraged from developing large property portfolios unless they form a limited company to enjoy the tax relief available.
Company Landlords Benefit from the Buy to Let Changes
The market has been waiting for a change to provide additional relief to both developers and buy-to-let landlords. Aldermore the specialist buy-to-let financiers have responded to the need by introducing new, more flexible mortgage products. From 23rd April, company landlords have been able to access the company’s more flexible mortgage products. These were previously only available to individual landlords.
The bank has reduced its early settlement fees. Furthermore, it is now offering remortgage products that don’t bring legal, product, or valuation fees with them. This fee structure makes a difference that will offer an impact to all their clients. Additionally, there will now be reduced rates to mortgages for multi-unit freehold properties and HMOs.
Rates start at 4.38% for the HMO and multi-unit freehold properties. This is for a two year fixed rate product and 75% loan to value. They have also reduced term variable rates across the range of their products. Some rates start as low as 3.28%. Their new remortgage products also enjoy no product, valuation, or legal fees either.
Aldermore is also rewarding their existing customers. Multi-property mortgages with discounted rates are available for those that have been loyal customers. Clearly, it pays to stay. New customers that submit a second or subsequent application or those seeking a remortgage will enjoy these products too.
They have also made it easier for landlords that have only recently started trading. Only one year accounts will now be necessary for those that are self-employed. A reduction in early repayment charges makes the offer even more attractive.
Aldermore’s commercial director of mortgages, Charles McDowell, says, “The sector has experienced significant change recently. So we regularly review our products to ensure we continue to support a broad range of customers. No matter how big or small their portfolio is”.
Technology Changes Improve Accessibility
Their own research has indicated that 41% of landlords intend to increase their portfolio over the next year. Interestingly, 15% of those that are not intending to expand will still seek to remortgage some of their properties.
Aldermore clearly understand how making changes to their products not only supports the industry but their customer base too. Focusing not only on financial accessibility but on technology too, customers can access their mortgages from their mobile phones too.
From April 23rd, brokers have been able to access their portal, get a quote, or submit a decision in principle from any device. This facilitates quicker decision making and access to the finance in a market where circumstances change really quickly.