Over 60% of landlords unaware of tax and MCD changes
Among accidental landlords, who rent out properties due to unforeseen circumstances such as being unable to sell, 71% of applicants were uninformed about the shifts in mortgage legislation, according to a survey among mortgage brokers by Direct Line for Business.
The MCD could impact their ability to secure a mortgage, as accidental landlords with one or two properties may not be able to pass the expected new affordability tests.
Some 49% of existing landlords looking to expand their portfolio were unaware of changes to either tax relief or consumer buy-to-let regulation, compared to 47% among new landlords aiming to create a portfolio, and 56% among new landlords looking for a single investment property.
In the Summer Budget, the Chancellor announced tax relief on mortgage interest rates for landlords will be cut from the current highest level of 45% to the 20% base rate.