Buy to Let Tax Rules and your Buy to Let Portfolio

With the new Buy to Let affordability rules that came into force on 1st January 2019 minimum thresholds were imposed by the Prudential Regulation Authority on Buy to Let lenders. These thresholds made sure that if rates were to rise to 5.5% you are still able to afford the mortgage payments..

Unless your Buy to Let mortgage rental yield meets these rules those looking to expand their property portfolio or are looking to remortgage to a Buy to Let mortgage may find it difficult.

Who will this affect?

Those landlords who own properties of higher valuer will more likely to be affected as these tend to yield a lower return in percentage terms meaning they may find that the rental income fails these new rules.

Some lenders had offered attractive stress test rates prior to the new rules coming into the place and the clients of those lenders would have felt the change the most.

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If you need any help we are more than happy to check your portfolio for you and if necessary provide a personalised report on what you can do to make sure you don’t get caught out. Contact Us for more information or advice.