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 the 23rd April company landlords have been able to access the company’s more flexible morgae 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 dont 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 products and 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 are 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 years accounts will now be necessary for those that are self employed. a reduction in early repayment charges makes the offer even more attractive.
Aldermores Commercial Director of mortages – 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 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 the 23rd brokers have been able to access their portal, get a quote or submit a deision in principle from any device. This facilitates quicker decision making and access to the finance in a market where circumstances change really quickly.