Independent Financial Life Planners Bishop's Stortford: Wanting to fix your mortgage as a landlord?

Wednesday, 8 February 2017

Wanting to fix your mortgage as a landlord?

Enable’s experienced IFA’s have many clients who have a buy to let property as part of their portfolio. Despite the uncertainty that has been part of the post Brexit vote picture some mortgage offers might well be worth a look. Barclays has recently unveiled its 10-year fix buy-to-let mortgage at 2.99% meaning private landlords are being offered an opportunity to secure low interest rates for a decade. The mortgage comes with a £2,000 fee but is not subject to strict rental income requirements because of the long time period of the loan.

On mortgage products with a term up to five years, the lender tends to require landlords to demonstrate that their rental income will cover their mortgage payment by a ratio of 145% if their mortgage rate went up to 5.5%. But there is a more flexible ‘affordability calculator’ on products that are five years or longer. Jonathan Harris, director of mortgage broker Anderson Harris has said of the new buy-to-let product launched by Barclays’: “A 10-year fix for buy-to-let is unheard of and the result of changing circumstances for the sector. “What is exciting about this product is that the affordability calculator takes into account the applicant’s overall income and expenditure position - so massively benefits those applicants with strong incomes and limited commitments. “The upshot is that they can borrow more than previously - a welcome innovation to recent restrictive practices in the buy-to-let market.”

As with many mortgages there are often conditions and this product comes with a high exit charge of 5% if you need to sell or remortgage before the 10 years have passed. If you are wanting to look into a mortgage for buying or renting we are happy to help.

Your home or rental property could be at risk if you do not keep up repayments.

https://www.landlordtoday.co.uk/breaking-news/2017/1/barclays-unveils-10-year-fix-buy-to-let-mortgage-at-2-99

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.