As we approach the middle of 2017 I thought I would give you an update on my experience with the housing market and the mortgage market for the first five months of the year.
We have seen a lot of changes with buy to let mortgage criteria in the last few months and this has had a downward affect on purchase transactions compared to the first half of last year. The changes have particularly affected the South East of England due to the high house prices.
Lenders require larger deposits in order for the rental income stress test to fit their criteria, and this, combined with higher stamp duty costs has put some investors off increasing their portfolios.
The changes on the tax on rental income for higher rate tax payers has also put some people off. We always recommend seeking profession advice from a tax specialist before purchasing a buy to let property.
There can be ways to minimise to impact of these changes so please contact us to discuss the options.
The housing market in our area is holding up well and prices are fairly stable. Interest rates on both residential, and buy to let, mortgages are extremely competitive so now is a good time to secure a good deal.
Looking at interest rates going forward it is very difficult to forecast what will happen. With the uncertainty of Brexit, and the upcoming election, opinion is constantly changing.
Please give us a call if you would like to discuss your mortgage needs.