According to L&C, Buy to Let landlords could be forgiven for thinking that they have been on the receiving end of some tough changes in the market recently.
The introduction of higher rates of stamp duty on the purchase of additional properties means landlords face higher acquisition costs. Meanwhile the regulator has unveiled new rules that could see a tightening in criteria for some lenders and the phasing in of changes to tax relief on mortgage interest will commence in April.
Whilst that may present some challenges to landlords it's not all bad news. Bank of England Base Rate had sat at a record low of 0.50% since it was cut in March 2009. All eyes were looking for a sign that could signal when rates might start to climb but all changed rapidly following the referendum vote to leave the EU.
That has seen Base Rate cut further to a new record low of just 0.25% and the Bank of England even went so far as to say it would consider further cuts if it felt it was necessary.
With a backdrop of low interest rates for longer and continuing competition in the market, mortgage rates could hardly look better.
That offers a great opportunity to cut mortgage costs by taking advantage of some of the great rates on offer. In fact the Council of Mortgage Lenders has pointed to the fact that two thirds of Buy to Let lending in August was remortgaging, as landlords look to restructure existing debts on more favourable terms.
Of course it is important to consider the costs of switching and not just the headline rate as some fees can be substantial. Shopping around the market for the best rate and fee combination for the individual circumstances will help achieve the best overall value, which will be valuable in helping landlords combat market changes.
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