There were 5,800 Buy-to-let home purchase mortgages completed in July 2019 which was up by 5.5% compared to the same time last year according to ‘UK Finance’. Since the BTL reforms the growth in popularity for Buy-to-let limited companies has surged. Portfolio landlords with more than 11 properties are much more likely to re-mortgage within a limited company format to utilise the full tax relief. The restriction of income tax relief on mortgage interest has been a major contributing factor. Landlords with more than 11 properties have an average of three different property types within their portfolio to aid diversification.
The HMO sector is set for further expansion as 21% of landlords are looking to add Houses in Multiple Occupation to their portfolios next year according to research from Precise Mortgages. HMO landlords are achieving the highest average of rental yields at 6.3% compared with the market average of 5.5%. The most popular property type is a terraced house accounting for 50% of landlords. The North West has the highest yields earning an average 5.9%. HMOs attract multiple tenancies; gross rental income is more productive and secure if one tenant leaves the void.
At Smart Money we can cater for First and Second Charge BTL including limited companies, HMOs and business purposes. Our expertise and close links with our lending panel gives your case every chance of success. If you have a specialist lending case you are struggling to place before you reject your BTL case give us a call on 01829 730 554 or submit your enquiry online