Buy-to-let  

Buy-to-let lending facing challenges

  • To understand the dynamics of the buy-to-let market
  • To learn how the tax changes take effect
  • To grasp the future direction of the buy-to-let market
CPD
Approx.30min
Buy-to-let lending facing challenges

Introduction

Buy-to-let used to be seen as a gravy train not so long ago; with mortgages cheap and property on the rise, it seemed like easy money for those that had  a few assets and a bit of spare capital.

But the upshot of it is that to many eyes landlords have helped to price many potential first time buyers out of the market. for many getting onto the property ladder just seems like a crazy pipedream.

The previous government administration sought to address this, and has since imposed a series of tax charges on the landlords holding multiple properties. It is also tougher to get a mortgage. These features hope to highlight some of the challenges landlords are facing.

In this guide

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. Why was there a hike in buy-to-let deals in March 2016?

  2. Why is adding properties to the portfolio no longer palatable to landlords?

  3. Why will those paying a higher rate of tax see an increase in mortgage interest payments next year?

  4. The Prudential Regulation Authority has decided that lenders should stress test all new mortgages in the buy-to-let sector; true or false?

  5. What have lenders raised their rental requirements to?

  6. Why might many discounted deals be out of reach for many borrowers?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • To understand the dynamics of the buy-to-let market
  • To learn how the tax changes take effect
  • To grasp the future direction of the buy-to-let market

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