Mortgage deals available for first-time landlords have soared in the last year offering greater opportunities for people making a move into the buy-to-let market.
Nearly 300 new mortgage options have emerged onto the scene in the last year, according to figures from Moneyfacts.co.uk, meaning new landlords can choose from over 1,400 deals.
The buy-to-let mortgage market has taken a big hit in the last few years with the Government phasing out mortgage interest tax relief, stricter lending rules being applied and many other challenges.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It’s encouraging to discover that first-time landlords have a huge choice of deals right now, particularly during a time of economic uncertainty.
“However, landlords will need to keep a close eye on their projected profit margins, especially as tax relief on mortgage interest will be scrapped in April 2020.”
Times are particularly tough for buy-to-let landlords at the moment. Moneyfacts quoted research from lettings platform Howsy, which showed that the average landlord was left with only £2,000 from an annual return of £13,000 once costs were paid.
Springall said these additional costs of managing a property, coupled with concerns about property market volatility, could deter many from investing altogether.
As such, she suggested any would-be landlords considering dipping their toes in the buy-to-let waters should speak to an adviser before proceeding.
“As it is a mere few months until tax reliefs are scrapped, it’s vital consumers seek independent advice to work out whether buy-to-let is a viable investment opportunity for them and to be made aware of upcoming changes facing the market,” she added.
