Paul Fryers, managing director of Zephyr Homeloans, says protection products can play an important part in building a portfolio of properties backed with buy-to-let mortgages.
Fryers adds: "As a result, landlords working with their broker on the best course of action for their needs is the best route they can take. Landlords should always take into account the purchase price of the property, average rents in the area, running costs and the tax implications for their chosen BTL business model – all of which will help them determine the likely profit on the property."
As well as trying to gauge where rates are going, another change landlords need to be considering are the developments relating to energy performance certificate ratings, which measures and categorises how energy efficient a property is.
From 2025, all newly rented properties will be required to have an EPC rating of C or above.
Currently, properties only require an EPC rating of ‘E’ or above. Existing tenancies will have until 2028 to comply with the new rule changes.
The pressure on lenders from the government is growing, so lenders will need to be looking to ensure that the homes they lend on are suitable.
With most of the homes in the UK being an E or D rating, landlords will also have to consider any costs to improve potential properties.
Scott Taylor-Barr, a financial adviser at Carl Summers Financial Services, says: “The EPC of the property is key now for a landlord buying property.
“The changes that are here and the proposed changes make this the biggest issue facing the sector at the moment.”
Ima Jackson-Obot is deputy features editor at FTAdviser
