In 2017 rates on buy-to-let mortgages have hit a historic low and are now comparable to residential mortgages. But, going fixed rate is advisable as, in uncertain times, there is a lot to be said for paying more for some certainty.
In this series, Amy Varle from Social Property Investment interviews Richard Ignatowicz from Mortgage Savers.
Mortage Savers are independent mortgage consultants, based in Wilmslow, Cheshire.
They predominantly specialise in buy-to-let mortgages, including commercial mortgages and HMOs (houses in multiple occupation).
Over the course of these videos, Amy and Richard discuss recent changes in buy to let finance including Section 24 and changes to mortgage interest rate tax relief, specialist mortgages for buy to let landlords and what the mortgage market looks like in 2017.
And of course, they address the burning question of today, specifically whether landlords are best advised to set up a buy to let limited company (as a special purpose vehicle or SPV) in order to continue being profitable as they are squeezed by changes in tax legislation and mortgage provision.
Richar Ignatowicz is a mortgage consultant with a difference in that he is also a landlord with a deep understanding the property market beyond the world of finance.
To see the playlist on Youtube click here
In the current property market cash flow is king and greater cash flow is to be found in lower value areas, where property deals can be found for under £100k. Investors who are not familiar with these areas may find themselves out of their comfort zone. This is something that can be overcome with due diligence and research.
To find a buy to let mortgage you need to consult with an experienced broker. Recent changes have made it very complicated and there is more change to come. There is a good chance that as of October 2017, anyone with more than 4 houses will start to find it very difficult to get mortgages to increase their portfolios.
With the introduction of Section 24, property investors are exploring ways to limit their tax liability. One way to do this is to form a limited company for buy to let. This solution won’t make financial sense for everybody but, if it is the route you decide to go down, then you will need your new company to be a special purpose vehicle or SPV.
Recently, there has been a lot of talk amongst property investors and landlords about incorporation and about whether or not incorporating a buy to let limited company is the best way to offset the financial implications of Section 24.
Unfortunately, Section 24 is going to make a lot of buy-to-let landlords a lot poorer but it isn’t going to affect everyone equally. Today, Amy and Richard look at what kind of investor is most likely to suffer and at why incorporating a limited company is not necessarily the best way to mitigate the problem.
Today Amy and Richard look at mortgage products for property investors and at what the biggest trends are in the property investment industry when it comes to financing. HMOs are, of course, very popular at the moment but do these need a commercial mortgage or are buy-to-let mortgages available for these kinds of properties?
The first in a series on buy to let mortgages with Richard Ignatowicz From Mortgage Savers. Richard is an independent mortgage adviser with a difference in that he is also a buy to let landlord and property developer who is, therefore, able to offer more practical advice than most mortgage advisers are able to offer.