Mortgages.

Buy to Let

The buy-to-let has continued to grow over recent years and following the change to the 2016 Chancellor’s budget has seen the change in how some landlords have gone on to structure their property portfolios. This has led to an increase in limited company applications rather than ordinarily opt for an individual or partnership mortgage applications. The landscape for property investment has changed much in recent years and much more thought is applied in the decision of how investment property is to be purchased and the potential benefits subject to which route is chosen. Axis Finance is very well placed to advise and help clients in making the right choice from a straight forward purchase transaction to property incorporations and can assist with long term financial planning.

We do advise on rental calculations and yields and how these determine the options available to you the client. We will also ensure that the investment mortgages can be regularly reviewed to ensure rates and payments are cost efficient.

Residential

We look at the whole of the market to secure the most sutiable scheme for your requirements.

HMO

Since the vast majority of standard buy to let lenders do not lend in this category, the more specialised buy to let lenders have gone to extend their mortgage options in this highly developed market where higher rental yields can be achieved which is very appealing to landlords to maximise rental income.

Typically talking here about a property that is let to 4 or more professionals, working people or students. Many landlords are keen to have this type of investment property in their portfolio as it produces greater rental yields and income. Axis Finance we have experienced a much greater uplift in HMO applications particularly in the last 4 to 5 years.

Lenders tend to require at least a couple of years letting experience before a landlord can look to apply and purchase this type of property, however, there are some lenders now allowing first time landlords to apply for this type of mortgage which shows just how much the market has changed in recent times.

When landlords seek to purchase larger HMO’s with more than the typical 4 to 8 bedrooms then experience is key with lenders that can provide mortgages for properties with upwards of 10 bedrooms and on occasion in excess of 20 bedrooms.

Multi Let

You do not have to pay ‘commercial rates’ for small multi tenanted properties as BTL lenders offer an excellent range of products that are very rate competitive and more attractive to landlords.

As with most buy to let options expert guidance is recommended but this is the more straightforward and cheaper to finance for you – we can use mainstream buy to let lenders and doing so can usually save substantial amounts of money in interest.

When we say multi let or multi unit – typically we’re talking about 2 - 4 tenants but sometimes more (either professionals or students). For example, a single freehold property may typically contain 4 self-contained flats that have within the flat have a kitchen, bathroom, bedroom and lounge. The experience that Axis Finance has helps the landlord in this sector make the right choice.

Limited Company

Following tax changes over the last few years for those owning buy to let properties personally it has seen limited company mortgages becoming more popular almost overnight. There has been a gradual tapering down of mortgage interest relief for personally held buy to let mortgages starting in April 2017, until the full impact in 2021/2022. Due to these tax changes landlords have sought advise to find out how they can potentially make changes that are more tax efficient, and the limited company option may provide benefits to fit with landlords plans go forward.

Taking specialist tax advice is always necessary as this is a serious route to consider when buying investment property nowadays given the changes.

The limited company itself can be brand new and have little or no track record or trading history, in fact lenders much prefer this to a trading business as your assets are ringfenced away from the risk associated with a trading company. You’ll need an SPV limited company (Special Purpose Vehicle) with the correct SIC code or (Standard industrial classification of economic activities). It sounds more complicated than it is as the process to set up a new limited company is actually fairly simple and low cost. Ask your accountant for advice and Axis Finance are more than happy to liaise with the accountant if necessary to ensure this is right for you the client.