Recent survey shows 62% of landlords unaware of new pending mortgage laws
In a recent survey by Direct Line 62% of Landlords had no idea of the new tax laws regarding buy-to-let properties about to be implemented, especially those who fall into the category of an accidental Landlord. These could be hit with large unexpected tax bills.
When questions where asked about the new EU’s Mortgage Credit Directive this figure rose to 71%. Under the EU’s Mortgage Credit Directive, landlord mortgage lending will be viewed as consumer lending, which could make it subject to more stringent lending criteria.
Nick Breton head of Direct Line for business, said: “The new EU legislation on mortgages coupled with the government’s increase in buy-to-let taxation could significantly alter the buy-to-let market, so we would encourage any mortgage applicants to think carefully about the new law and how this could impact them as a landlord.
“With house prices in the UK rising by 7% in the year leading to October 2015, and with the estimated average deposit standing at more than £61,000, it is imperative that landlords are able to maintain a suitable amount of property to house the population of young people saving up to buy their first property, or those seeking a temporary stay in a town or city.”