Monday 14 September 2009

Will British buy-to-let investors be able to refinance?

According to the British mortgage body CML, buy-to-let investors agreed just 7,790 mortgages in the second quarter of 2009. This compares with 36,130 in the same period
during 2008. Quite a few deals are coming to their end and it will be interesting to see of buy-to-let investors can roll over or refinance at advantageous interest rates. Lloyds Bank has introduced a maximum of nine properties for individual landlords over its various brands.
The UK banks could really kill off the buy-to-let market in their move to re-price risk. Investors have used the equity built up in earlier residential purchases to finance the acquisition of their later buys.
Commentators consider in any event that the Bank of England will start lifting rates in June 2010. VAT could be restored to more than 17.5 pct and tax and national
increases will be taking effect.
www.searchaccountant.co.uk
The burgeoning buy-to-let sector has been partly a response to the poor value the UK pension system has given to its contributors. The pension system is so complex with annual changes that letting out a flat or house seems quite a simple affair.

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