Buy-to-let property remains an attractive income investment at a time of low saving rates and stock market volatility, according to Together.
Despite the introduction of higher stamp duty purchasing costs, the recent scrapping of the wear and tear allowance, and the pending removal of landlords’ mortgage interest tax relief from next year, the specialist lender reports, based on its own lending activity, that investors continue to be drawn to the buy-to-let market as the returns routinely outperform those of other investments.
“Buy-to-let has proved to be a resilient sector this year, despite the tax changes introduced by the government,” said Together’s commercial CEO, Marc Goldberg.
He continued: “Buy-to-let lending continues to perform well for us here at Together, and we’ve been able to grow whilst maintaining a high quality customer base. Given this growth, we want to ensure that we offer a variety of products to meet the continued demand.”
Together has just introduced a new five-year fixed buy-to-let mortgage to meet the demand from this growing market, with the maximum loan size increased to £500,000, while offering landlords and property investors the opportunity to fix their costs.
Goldberg explained: “Our new fixed-rate product, as well as bigger loan sizes, will help us deliver more funding to property investors, through our network of broker partners.
“We offer both interest-only and repayment options, with loan-to-values of up to 75%, and we’ll accept projected rental incomes, so landlords don’t need to have a tenancy already in place to secure the funding needed.
“We also lend to limited companies, and have seen an increase in applications from limited companies for buy-to-let funding, as a result of the various tax hikes.”
Together recently announced record trading results, with annual new lending for the year to 30 June 2016 surpassing £1bn for the first time in its 42-year history, and a current loan book in excess of £1.8bn.