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Changes to the income tax treatment of buy-to-let may have been announced some time ago, but the financial impact of these changes are only just starting to hit landlords in the pocket.

With tax returns for 2017-2018 now being submitted ahead of the end of January deadline, these will be the first to include the staggered removal of mortgage interest tax relief on rental income.  Consequently, many of those returns will result in a larger than expected bill for some landlords.

Individual residential landlords with mortgages on their properties will be affected if they are higher or additional rate taxpayers or pushed into higher or additional rates by the new mortgage interest relief restriction rules.  The first year that the rules came into effect was for the year ending 5th April 2018. However, as the due date of tax for said year is 31st January 2019, people will be feeling the pinch for the first time soon.

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Posted in Buy To Let

The Help to Buy equity loan scheme recorded its busiest quarter in the three months to June since being launched in 2013.

According to official data, April to June saw 14,867 Help to Buy equity loan completions with loans worth £962m in England.  In the first half 2018 a total of 25,036 loans were completed worth £1.63bn to purchase properties worth £7.23bn.  Compared to the same period in 2017, completions were up 13% with the value of loans and properties purchased both up 18%.

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Posted in Uncategorized

Buying a second home and moving up the property ladder is more difficult than buying a home for the first time, 60 per cent of ‘second steppers’ claim.  With uncertainty about how the property market will fare after Brexit and the costs involved in buying a new home rising, many buyers looking for a second home are struggling to sell their first property.

To make matters worse, an increasing number of homeowners are shunning the idea of moving at all and are simply expanding their current homes, prompting a shortage in the number of homes coming up for sale in certain areas. Read the rest of this entry »

Posted in News

From 1 October 2018, any rental property occupied by five or more tenants as their only or main residence must be licensed if the tenants share kitchen or bathroom facilities. The property can occupy any number of floors.  This follows a change in the law regarding the licensing of houses in multiple occupation (HMOs) under the provisions of the Housing Act 2004. Read the rest of this entry »

Together has extended the maximum term on its residential mortgage products to 40 years in an effort to help more first-time buyers get on the property ladder.

The extension will help bring down the monthly cost of borrowing for buyers struggling with high house prices and stricter affordability tests by spreading repayments over a longer term, the lender said.

Monthly searches by brokers using the Twenty7Tech system to source mortgages of 30 years-plus almost doubled between January 2017 and August 2018, accounting for more than a third of total searches last month.  Those looking for deals spread over 40 years have risen from 9,305 in January 2017 to 26,829 last month, according to sourcing system’s data. Read the rest of this entry »

House prices being offered dropped by 2.3% in August while home-movers who want to move in by Christmas should be active in the market now, according to Rightmove.

Estate agent Connells said it had re-launched 5,000 properties with substantial reductions since the start of the summer – selling 30% of them.  The Rightmove report noted that average asking prices of newly-marketed property has dropped in August by 2.3% against a 2.1% fall in the same month last year, as new sellers aim to achieve a quick sale.  London and the commuter-belt region of the South East were responsible for a large part of the fall in the national average. If those two regions are excluded the rest of the country has a monthly drop of 1.5%. Read the rest of this entry »

Posted in Property prices

Base Rate increased to 0.75%

August 2nd, 2018

Monetary Policy Committee Announcement and Minutes

At its meeting ending on 1 August 2018, the MPC voted unanimously to increase Bank Rate by 0.25 percentage points, to 0.75%.

The Committee voted unanimously to maintain the stock of sterling non-financial investment-grade corporate bond purchases, financed by the issuance of central bank reserves, at £10 billion. The Committee also voted unanimously to maintain the stock of UK government bond purchases, financed by the issuance of central bank reserves, at £435 billion.

[Source: Bank of England, 2 August 2018]

Posted in Interest Rates

Bank statements provide lenders an insight into the lives of prospective borrowers, but some activities could result in an application unexpectedly being turned down.

Providers are looking for any clues that customers may struggle to keep up with repayments in the future.

Here are the bank statement activities that brokers say act as red flags to lenders, and at the worst mean applications are rejected.

 

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Posted in Mortgages

If you’re a Landlord aged over 55, you may be interested in one of Retirement Advantage’s Over 55 Buy-to-Let Options.

Release cash tax free from Buy-to-Let properties

The Over 55 Buy-to-Let Options are secured on a Buy-to-Let property.  They allow Landlords to release cash from their property tax free, leaving their entire portfolio intact.  You can choose to make capital and interest payments or let the interest roll-up.  There are no affordability assessments on any of the options. Read the rest of this entry »

Posted in Buy To Let

The Bank of England has admitted that current forecasts show its base rate could remain under 2% for the next 30 years.

Earlier this month Bank of England chief, Mark Carney, raised expectation of a base rate increase in August, but it is now suggested it could remain under 2% for the next 30 years! Read the rest of this entry »

Posted in Interest Rates

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