Gross mortgage lending across the residential market during 2018 was £267.5bn, some 3.8% higher than in 2017 according to UK Finance. This trend is in line with rising property price rises and a somewhat buoyant property market, particularly in Wales - the largest annual price growth was recorded in Wales, increasing by 5.5% over the year to November 2018 (UK House Price Index).
Borrowers would be wise to take advantage of an array of low-cost mortgages for all circumstances:
Brokers, more often than not, have access to better deals than going direct to lenders – the most notable ‘Big name’ lender being Natwest - currently offering lower interest rates and cash back exclusively through an intermediary. It will literally cost you more to go direct to the bank and probably take longer - appointment queues of 2 weeks are not unheard of and mortgage interviews lasting 2-3 hours have been reported. In addition to Natwest, brokers have access to a handful of intermediary only lenders and lenders available to you that you may never have heard of – or at least considered, undercutting the usual suspects with substantial savings to be found.
Those coming to the end of their current deals can also benefit from cashback options enjoyed by home movers, the market is uber competitive right now. Lenders continue to fight for business in all areas, offering fantastic deals to residential and buy to let borrowers.
Buy to Let tax changes are starting to bite.
The tax returns in 2019 is when this will all become more apparent. One in five landlords is considering selling up as a result of the tax hit, according to the National Landlords Association (NLA). The Government decided to phase in the new mortgage interest rules over a four year period with the amount of mortgage interest tax relief steadily falling each year from 75% in the 2017-18 tax year to 25% in the 2019-20 tax year. By April 2020, all of the rental income landlords earn will be taxable, and instead they will receive a 20% tax credit for their mortgage interest, meaning they can cut their final tax bill by 20% of their interest. One change has been an increase in people buying properties within a limited company structure, as this will have different tax rules. This should be discussed with a qualified accountant, in conjunction with your mortgage broker to weigh up the different products and costs.
Your home may be repossessed if you do not keep up repayments on your mortgage
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