Page 6 - The Pulse Issue 4
P. 6
To help you place a case...
Below informa�on contains highlights only. Please visit our website or call our sales team for full criteria.
Shared Accommoda�on
Locks on doors allowed.
Downstairs bedrooms accepted.
Valued on a room by room basis.
Multiple AST's
2016: A YEAR OF CHANGE FOR Minimum Property Value
BUY TO LET For HMO, converted freehold, ex-local authority
(inc. ex-housing associa�on and ex-MOD) proper�es:
Quarterly Compliance Update £100,000 outside London and South
East Regions.
With many brokers seeing Buy to Let mortgages Setting up and running a limited company can come with
counting for as much as 50% of their business, it its own costs which for the smaller investor may prove £150,000 inside London and South
comes as no surprise that the recent attention on counterproductive.
this area of our business is somewhat concerning. With MCD we also saw the definition of a Buy to Let East Regions.
change with many previously unregulated transactions
For a number of years now, Buy to Let mortgages have falling under the regulated banner. For some firms this had
enabled many people to invest in property and build a a considerable impact on their sales process whilst others Rental Income Accepted
portfolio, where before this was limited to the wealthy and who already treated Buy to Let the same as regulated
property professionals. transactions, saw limited impact on their business.
We are now seeing a considerable crack down on this area The next challenge, entering the arena in January is new Accepted as sole source of income.
of our market place which is not only hindering clients but PRA rules, requiring affordability and stress testing checks
also could have devastating impacts on broker income. on all buy to let mortgage applications. For many, out of All income documented on an SA302 can
all of the changes this will have the biggest impact, as be considered.
Understanding what these changes are will help ensure new PRA rules are requiring a 25% profit on the client’s
brokers stay ahead of the curve and continue to help investment and the assurance that clients can afford
clients trade in the Buy to Let space. mortgage payments if interest rates were 5.5%. Mul�ple other sources of income also
accepted.
So, what have we seen during 2016? For guidance on how to best approach these changes,
contact our Specialist Team on 01702 538 800. Their
Revised taxation rules have meant that the net cost of regular contact with a wide range of mainstream and niche
owning an investment property increases considerably as lenders ensures they can point you in the right direction
HMRC removed the ability to offset mortgage payments if you are struggling to assist a client. In addition to this, Contact us to
against taxable income. they can provide either a packaged only or fully advised
and packaged service to any clients which you would discuss a case:
Running alongside this was the increase in stamp duty prefer to refer.
on second and subsequent properties. Instantly we saw
clients being advised to create limited companies with David Ewing
which to purchase and own property as this was a potential Managing Director CORRECT AS AT 06/01/17. FOR INTERMEDIARY USE ONLY. Fleet Mortgages is the trading name for Fleet Mortgages Ltd.
means of reducing tax liabilities. Registered oce: Flagship House, Reading Road North, Fleet, Hampshire, GU51 4WP. Registered in England No: 08663979.
5
