The Team

Some chinks of light in the private landlord market
17/04/2020
Some chinks of light in the private landlord market

We are aware of just how touch it is in the private rental sector with the challenge of defaulting tenants on the one hand and the need to continuing to pay any mortgages on the properties owned.

 

Whilst these are very trying times, there are a couple of opportunities to help landlords in the current climate.

 

In order to protect the damage loss of rent can do, there are rent guarantee policies available to cover landlords in the case of a defaulting tenant. These policies seem to be very good value at around £300 to provide up to six months full rent should a tenant default. Given the fears that exist about redundancies this is something worth considering.

 

The other issue we’re hearing more and more from private landlords is the cost of borrowing. Landlords who are reviewing their costs are discovering that there are some great deals out there for those who wish to remortgage. With interest rates at a historically low level, landlords can take advantage of the available deals to reduce the interest element of their loan repayments.

 

Despite the fact that the Registers of Scotland is operating on a very much restricted basis, remortgage cases can still proceed without any great difficulty. That means that if you decide to remortgage during the lockdown, the business can be processed and you can start to benefit from the lower interest mortgages currently available.