Buy To Let Investors
New data released today from Mortgage Advice Bureau suggests that Buy To Let investors are taking advantage of the stamp duty reform. The changes, which were announced in last month’s Autumn Statement, appear to be fuelling a rise in mortgage applications while keeping borrowing in check.
The data also reveals the Chancellor’s new rules has helped some buyers by releasing extra funds for a deposit: allowing them to take on a greater share of the cost of buying a home. Average deposits in December were worth 30.7% of the purchase price, the highest since October 2013 when the average was recorded at 30.9%.
Brian Murphy, head of lending at Mortgage Advice Bureau, comments: “December’s stamp duty announcement was an early Christmas present for many aspiring buyers. Having extra funds to put towards a deposit can not only help to limit borrowing commitments and give people more bargaining power. It can also allow access to better mortgage deals at lower LTVs, either at the point of purchase or when it comes to remortgaging at a later date.
The Mistoria Group welcome these findings
Mish Liyanage, Managing Director of The Mistoria Group comments: “The new rules kicked off on 4 December 2014, but investors who have already exchanged on a property, will have a choice about whether to use the new or old rules. However, if investors completed on their purchase on or before the 3 December, but have not filed their stamp duty return, they will still have to pay their stamp duty under the old rules.
“The change to stamp duty is great news for investors considering student property in the North West, as there are big savings for HMOs to the value of £250,000. In the North West, the average four bed HMO will cost £140,000, so the savings could be over £1,000.”
For further information, please visit www.mistoriagroup.com or call 0800 500 3015.