Paradigm Mortgage Services has published an adviser factsheet on the recent developments and forthcoming changes to the buy-to-let market.
The factsheet covers off a number of areas including details on the forthcoming changes to tax relief on mortgage interest payments with two case study examples to highlight how clients might be impacted, plus a focus on the wear and tear allowance which has recently changed from an automatic deduction to a relief which will need proof of repair or replacement.
Paradigm also covers the two ongoing consultations which are likely to have a considerable impact on the buy-to-let market, particularly lending activity. They are:
- CP11/16 – Underwriting standards for buy-to-let contracts.
- Basel Committee consultation paper on higher capital requirements for buy-to-let.
The paper gives a brief rundown on both and suggests a number of implications for those active in the buy-to-let sector.
Paradigm is urging advisers to fully review how the shifts in the buy-to-let market will impact on their client’s ability to purchase property, refinance, and add to their portfolios.
To view and print the factsheet, advisers should visit: www.paradigmmortgages.com/DA/News/factsheets.php
Bob Hunt, chief executive of Paradigm Mortgage Services, said: “To say the buy-to-let market is going through a period of flux at present would be something of an understatement. With all the changes that have taken place in recent months, plus impending consultations and measures which are due to be introduced over the next 12 months, it’s important that advisers keep on top of what’s happening.
“This factsheet, put together by our mortgages technical director Christine Newell, provides advisers with a run-down of all the recent changes plus details on what is coming next, and how it might impact on the buy-to-let market as a whole, lenders’ activity and loan criteria, plus the investment decisions clients have to make in the future.
“We would therefore urge any adviser active in this changing sector to review the factsheet in order to keep abreast of these developments.”