New figures have shown that since the introduction of a stamp duty surcharge, the number of buy to let mortgages have dropped.
Since April 2016, anyone buying a buy-to-let property or a second home has had to pay a 3% stamp duty surcharge.
The Council of Mortgage Lenders figures show that in the 12month since the tax changed the number of loans advanced for house purchases by landlords has halved
Some 71,100 loans were authorised in the year since the tax changed, compared with 142,100 loans in the previous 12 months.
However there was a significant rise in mortgage lending for house purchases in the buy-to-let sector in March 2016, just before the new tax came into force.
As well as the 3% surcharge on stamp duty the landlords have also been affected by what they can claim in tax relief on their buy to let property.
The latest figures also reveal that although landlord house purchases have stayed low over the last 12 months, the number of first-time buyer mortgages have started to increase. However it is still a challenge for first buyers to afford the ever increasing house prices and the large deposits required to purchase their own home.
In addition to that, a survey carried out by mortgage lender L&C Mortgages estimated that 2.5 million existing home owners are feeling the pressure from the rise in the inflation rate to 2.7%. – It is forcing them to make significant cutbacks, to reduce their spending, in order to afford their mortgage payments.
At Peter Robinson & Co. we have 30 years of experience dealing with landlords and can give detailed advice to anyone purchasing a buy to let property.
If you’re a professional property investor, Peter Robinson & Co. can also help with all aspects of buy to let mortgages.
Get in touch on 0161 678 7996