Investment Mortgage United Kingdom
Investment Mortgage United Kingdom | Property Investor Report
When looking for an investment mortgage United Kingdom landlords may want to ask questions about the types of property they can borrow against and laws that might affect their mortgage. Here are some of the areas that investment mortgage United Kingdom property investors should know about.
Some investment mortgage investors are interested in social housing, but there are wide variations in investment mortgage United Kingdom lenders' approach to this area. For example, most investment mortgage United Kingdom lenders will not provide a BTL mortgage for a DSS or local authority property. Investor landlords who are seeking an investment mortgage for this type of property will have only a small pool of specialist lenders to choose from - and new landlords may not get a look in at all. This is because the few investment mortgage providers who lend for this type of property usually lend to landlords with large portfolios and a track record in property management. These restrictions may also apply to property that is designated for tenants who are asylum seekers. Many lenders will steer clear of this type of property.
When it comes to getting an investment mortgage United Kingdom borrowers who wish to invest in student flats may be in for a shock. This type of property is popular with landlords, because of the steady supply of tenants who generally pay on time (or at least, their parents do). However, only a few investment mortgage lenders will provide a mortgage for houses in multiple occupancy (HMOs). This situation has become more acute since the introduction of legislation governing HMOs. Some lenders will not lend on HMOs which need to be licensed, which can restrict the pool of investment mortgage United Kingdom lenders available to investor landlords. There is also an issue of the timing of the licensing, where some lenders are asking for properties to be licensed before issuing a loan, while purchasers want to own the property before getting a license.
Local Authority BTL
Another area for investment mortgage United Kingdom landlords to consider is former local authority housing. Again, investor landlords will find that most mortgage lenders will not lend on this type of property. There is a perception that this type of property is less attractive and harder to sell, making it a bigger risk for mortgage lenders. This means that the investment mortgage United Kingdom lenders who do provide mortgages for former local authority housing are likely to charge a premium for doing so by loading the interest rate.
Investor landlords also need to be aware of changes to the law that might have an impact on the buy to let market. The tenancy deposit scheme is intended to protect tenants' deposits by having these held by an intermediary. This means that tenants will not face the mysterious disappearance of deposits. Since deposits are not considered when applying for an investment mortgage United Kingdom landlords should not be affected.
The introduction of home information packs this year may affect BTL remortgages. With the reduction in fees, fee-free remortgage deals may be less attractive and other incentives might be offered. That aside, it is not expected to have much effect on the investment mortgage United Kingdom market.
