Portfolio Landlords Facing Mortgage Difficulties

Buy to let investors with 4 or more properties in their portfolio are starting to feel the impact of the change in regulations for lending that came into force in September this year.  I was speaking to Tom James at Thomas Nicholas Financial Services, to find out what impact this has had for local investors.

He explained that previously lenders assessed a buy-to-let mortgage applications based on the rental income and property value of the property they are lending against. From 30 September 2017, any landlord who owns four or more mortgaged buy-to-let properties will have to submit income and mortgage details on all of them every time they re-finance one, or purchase a new property.

This has hit investors looking to purchase another property for their portfolio or looking to re-finance their properties. The criteria has become much stricter than we have seen in the past so lenders are refusing to remortgage a property that previously fit their criteria.

This is resulting in some landlords increasing the equity they have in a property, considering selling their investment property and in some cases deciding not to invest in additional properties. This is not good news for tenants, who in Bingham are seeing rents continue to rise as the stock of available rental property does not satisfy the high demand in the area. 

You can do something to minimise the impact of these changes.

It’s vital that a landlord with a portfolio of properties regularly asses the rental levels to ensure they keep up with the current market rates.  Inspect the condition of your properties, it is vital they are being kept in a good condition to ensure you receive the maximum return on your investment and to minimise void periods.

If you would like to review your current portfolio performance please contact me to arrange a no obligation meeting to assess the current rent and property conditions.

You should also contact Tom and look at the lending you have in place to ensure you are fully aware of what you should expect when you need to renegotiate your borrowing.

Katie Archer - Belvoir Lettings Bingham 01949 714101

Tom James - Whole of market, free of charge mortgage advice: 0330 1200324

Are Village Properties Becoming More Popular?

Recently we have had various different properties to let in the Vale of Belvoir and villages surrounding Bingham. Village properties are seeing an increase in popularity whether it be a one bedroom cottage or detached farmhouses.

When we first started managing properties to let in the Vale of Belvoir area 19 years ago many of the village properties were less well cared for by landlords and often cold, draughty properties. Today our Landlords are building or renovating rural properties to appeal to a different type of tenant.

As renting becomes the norm many are seeing it as a lifestyle choice and many rural properties offer easier commutes to larger cities and a quiet space for those working from home. Villages also benefit from improved broadband speeds.

Tenants get the opportunity to live in a home that they may not have considered in the past or have the opportunity to buy, and enjoy a rural lifestyle. We find tenants may use their time in rented property to really get to know an area before they purchase.

Of course the other big draw is schools. With many village primary schools offering an excellent level of teaching, we find this does draw many families to rent in the Vale of Belvoir and Bingham.

What should you consider if you have a rural property to let?

Parking and secure outside storage is important for any family living rurally as hobbies are important and come with lots of expensive gear!  Many people looking to rent in the villages have or would like to have pets – is your property suitable?

If you are thinking of letting out a property please give me a call and we can talk through the important things to consider. Every rural property is different and requires a different approach so for honest advice from a local letting specialist speak to me on 01949 714101.