There have been many changes in the buy-to-let market in recent years, which is why it is important for landlords to get informed and up-to-date advice when considering new property purchases.
The changes that affect landlords include the extra costs of increased stamp duty and reductions in mortgage interest tax relief. Landlords with more than four mortgaged properties face stricter mortgage lending rules. Landlords have been required to upgrade the energy efficiency of some of their energy-inefficient buildings.
Landlords need financial advice. A commercial mortgage broker who has up-to-date knowledge of the buy-to-let market can help. They can look over a business plan for a new investment to make sure that it is solid, then match the borrower with the best commercial mortgage deal.
Lenders have a variety of specialist commercial mortgage products. For example, a standard buy-to-let mortgage could prohibit short-term letting of property using Airbnb and similar agencies. A specialist lender will provide a mortgage that allows short term tenants.
Finding a mortgage is not just a question of discovering the cheapest interest rate. It is important to remember that the terms and conditions of the mortgage must allow for the type of use that the landlord wants. A mortgage broker will help borrowers choose from the many available options.
The application process for a buy-to-let mortgage is more complex than a standard mortgage. A broker can advise on what documents are required to support the loan application and find the most suitable deal.