What with the increasing tax on rental income since April 2017, the end of the furnished property tax allowance, and recent low rent increases, a property sale is something that property owners are beginning to consider.
However, with current low interest rates on buy-to-let mortgages, this is also a great opportunity to think about whether re-mortgaging will make you considerable savings.
One of our landlords recently re-mortgaged a buy-to-let property with a 2 year fixed rate, at 1.89% interest rate – saving £356.07 each month (previously £617.37, new mortgage £261.30). This adds up to over £8500 saved in the 2 years!
In addition, if you have any financial reserves to invest in enhancements to your rental property, this should sustain the capital value, and increase the rental value too – assisting with improving your re-mortgage calculations.
To ensure that you receive the best financial advice for your circumstances, it is advisable to use a recommended independent financial advisor. If you’d like to know more, please just ask.