Recent survey reveals many landlords unaware of new tax rules on mortgage
A survey by Direct Line has revealed that 62% of applicants where unaware of the mortgage tax relief changes or the EU’s Mortgage Credit Directive even though this would effect their ability to secure a mortgage. This figure rises to 71% for accidental landlords, those property owners who rent out property due to buying a 2nd property or inheritance.
From April 2017 the ability to offset mortgage interest costs against rental income will be removed making many property investments uneconomical. The new EU
In the research, by Direct Line for Business, only seven per cent of mortgage advisers believed that the EU changes would have a positive impact on approvals of buy to let mortgage applications, compared to 59 per cent who expect it to have a negative impact.