This week’s first round of comments is in response to: BTL market ‘virtually non-existent’ despite falling rates ‒ analysis
John Emmett said: “The buy-to-let sector has been taxed out of existence. The current stress tests are a barrier to new purchases and remortgaging too. Added to this is the increase in regulations and the organisations who queue up to help those tenants who will not pay their rent. With the increase in savings rates, many landlords are better off selling up and investing the proceeds.
“Some providers are trying to generate business with workarounds. However, the seven per cent arrangement fee to capture a lower rate stress test can result in a huge fee. Enough to purchase a mid-range family car. Broker and landlord must be clear as to the implications if the fee is added to the advance.
“The need for joined-up government thinking, at a time when the demand for accommodation, particularly in London and the South has never been greater.”
John Azopardi added: “It’s a tough time for landlords, many of whom will have to go into ‘survival mode’.
“Given tighter affordabilty on the residential side, it’s also tough for landlords to get out of the market. It’s a first world problem, but to be stuck on standard variable rate whilst you are trying to sell, with no tenant, is a painful experience right now.”
Labour housing pledges just ‘more words’
This week’s third comment comes from: Labour’s Starmer commits to 1.5m homes and building on ‘grey belts’
Michelle Lawson noted: “More words, much the same as the current bunch who also haven’t delivered the 300,000 homes per year that they promised.
“It’s only worth making promises if you have done background research to make sure it is credible and can be delivered which these all don’t seem to be able to do.”
Consumer Duty making critical illness ‘more complex’
The final comment is on the story: Critical illness policies are going through a Consumer Duty overhaul – Lakey
Michelle Lawson said: “I’m sorry but I am struggling to see how this is ‘fair’ and ‘clear’ to consumers. It is bad enough as an adviser to understand what these are all about, but then to explain to a client in a way that is ‘clear’ to them what their policy does is something else.
“With Zurich alone having 15 policy variants, this is further muddying the waters rather than simplifying in my opinion. It is making the complex more complex.”
The comments here are from our readers and do not necessarily reflect the views of Mortgage Solutions and Specialist Lending Solutions.
