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News & Views

The wind of change is blowing through the buy-to-let (BTL) market and it is a breath of fresh air for our industry. Are you a landlord in Shropshire with one Buy To Let property or even a portfolio? Maybe you are considering purchasing your first property to rent out?

Higher rents and slightly lower interest rates have put a completely different complexion on the market compared to early this year when it became a tricky scene for landlords – meaning BTL landlords are very much back in business!

Dwello Mortgages would love to support you in your rental portfolio journey. Telford is a fantastic area to rent out residential properties with a huge demand for properties, especially for corporate workers who work in the borough for short term contracts and also families moving to the area and others who have been brought up in Telford and want to move out and rent their first home.

Professional house shares are also a popular choice in Telford for many of the corporate staff and also doctors and nurses and support staff working at the Princess Royal Hospital. 

What is BTL? 

A Buy-to-Let mortgage is for people who do not want to live in a property but rent it out instead. Being a BTL landlord means knowing: 

  • Most BTL mortgages are interest only
  • You will need a minimum deposit of at least 25%
  • You are not restricted to taking out one mortgage but each will require you to meet the lender’s criteria
  • Property prices fall as well as rise which may mean losing money on your investment when you want to sell
  • Interest rates are higher than for residential mortgages
  • BTL mortgages can be the ideal solution if you are planning to buy property and rent it out

A professional viewpoint

Our founder and principal mortgage adviser Nathan Blissett gives his thoughts on why the time is now right for potential BTL landlords to enter the market:

He said: “The market has finally shifted, and not a moment too soon. BTL landlords can now apply with confidence that their applications will be accepted and better yet, they will hopefully make some profits from their BTL investments. 

“Lender affordability thresholds have now returned to a position where rental income can sustain the property repayments. This is due in part to the catching up of the rental market as a whole to the ‘new normal’ of 2023 inflation.

On the move

“With higher rents being achieved and slightly lower interest rates over the last two months of this year, we have found enough wiggle room to get the most vanilla of cases across the line. 

“This is a stark contrast from April to September of this year where lenders pulled all the products to that point and reintroduced products pricing everyone out of the market – including the more recent product innovation that included eye-watering application fees of 3% to secure a product on a 3.99% interest rate. 

“LendInvest are currently offering the cheapest rate based on a £100,000 mortgage at 75% LTV. This would mean a product fee of £5,674 at application to be payable. 

“The numbers just didn’t add up for landlords earlier this year, which has shown the majority of BTL landlords will remain on their variable rate for the foreseeable future until the trend slowly shifts towards their financial favour in the next one to two years.

Seeking guidance

“Speaking to an adviser is of paramount importance during this transitional period to determine whether or not to tie in to a fixed rate now or wait it out on a variable or discounted product for the interim. Get in touch with us at Dwello Mortgages today for independent advice which will help you achieve the most potential out of your property portfolio.”

Talk to us.

We’re a tight and focussed team, so we work strictly by appointment only. Book your initial consultation at a time to work around you.

Talk to us.

We’re a tight and focussed team, so we work strictly by appointment only. Book your initial consultation at a time to work around you.