South Wales financing expert says ‘Time is now’ for Buy to Let (BTL)

Gareth Holtam, Commercial Director, Cornerstone Finance says that Buy to Let is a great opportunity in 2019.

Back in 2016, the Financial Times predicted the best time to be investing in the BTL would be 2019. So according to the FT, for BTL the time is now!

Why did they arrive at this conclusion? It was driven by the changes to taxation by the then Chancellor, George Osbourne. Raising stamp duty and removing the ability to off-set mortgage payments from income would drive many people out of the market, said the FT.

However, that hasn’t necessarily been the case! In fact, at the time of the article (April 1st, so maybe they were joking?!), one building society reported only 1 in 7 applicants for BTL mortgages had changed their plans.

In 2018 Cornerstone Finance experienced a huge upturn in requirements for specialist finance, especially in the areas of BTL and HMO property investment.

One of the reasons for this is interest rates remain low and there is increased competition among finance providers. So much so even high street lenders are making a return to BTL lending after a lengthy absence.

The pension freedom changes have also enabled many to invest in property and see enhanced returns over and above paltry annuity figures. Low interest rates don’t help everyone!

The fact is there remains huge scope for a healthy yield from a BTL investment. Finding the right property at the right price is a great start. Location remains all-important and is worthy of consideration. While many flock to cities and to University towns, more remote areas often have an unexpectedly buoyant rental market helped by the sheer lack of available rental properties.

Arguably, the BTL market has never been as accessible as it is today, with a plethora of BTL finance options and specialist finance providers on hand to lend.  However, as is always the case, as a developer or BTL landlord, you must find the best lender for your unique requirements.

Cornerstone Finance has access to up to the minute information on the best offers in the marketplace, and like most brokers, we are happy to offer an informal discussion about BTL options.

About the author

Gareth is the Commercial Director for South-Wales-based Cornerstone Finance.  For more information please visit the company website or telephone 029 2166 0550