This 0.25% increase is the first in over a decade, and puts interest rates at their highest level since March 2009. Bank of England Governor Mark Carney advised that there would be further rises to come – but that they would be “gradual” and “limited”.

Over 3.5 million people with variable or tracker mortgages will be affected as their mortgage payments will increase. To put that into perspective, on a &150,000 variable mortgage, a rise to 0.75% is likely to increase the annual cost by &224.

It is impossible to predict what will happen in the future; some commentators are suggesting that the increase is to give the Bank some wiggle-room in case a no-deal Brexit causes another economic downturn (so rates can be dropped again). Others are saying it is to slow inflation. Either way, homeowners and landlords are caught in the middle, trying to decide if now is the best time to buy, or whether they should wait and second-guess the markets and see if they drop again, along with house prices.

Popularity in 5 Year Fixed BTL Mortgages

 Many buy to let investors switched their mortgages to make savings on their mortgage payments ahead of the recent interest rate rise, with a massive 93% choosing a fixed rate mortgage. According to Mortgages for Business, of those 93%, 69% chose a 5-year fixed rate.

Their research also found that in Q2 of this year, 20% of all the mortgages available didn’t have a fee attached, which suggests lenders are absorbing costs in order to remain competitive.

Landlords Need to Capitalise on Cheap Lending

Landlords and property investors who are heavily geared (with mortgages that are high compared to the value of their property) are being encouraged to re-mortgage sooner rather than later.

Research from DJ Alexander Ltd has discovered that one in three landlords are already paying too much for their mortgage.

With changes in the way tax is calculated on rental income, it is more important than ever for landlords to review their property portfolios and capitalise on the cheap lending if they are looking to increase yields.

Number Crunching - Treat it Like a Business

Hannah McCartan, MD, McCartan Lettings comments “There is no simple, one-size-fits-all answer to interest rate rises as the implications for each individual are so complex.

But one thing is certain; if they haven’t already done so, Landlords must start crunching numbers now for their 2018/19 tax bill and longer term cash flow forecasts. It may seem like a boring exercise (one that may be a bit too complicated to sort out on your own!), and it’s a long time before that bill has to be paid, but reviewing your mortgage and getting a better rate now could increase cashflow and help the numbers going forward.

If we take the example above, if there is an extra &224 interest to pay on a buy to let mortgage in this current tax year, only 50% (&112) can be directly off-set against rental profit. The remaining 50% (&112) will only attract tax relief at 20%, even if you are a higher rate (40%) or additional rate (45%) tax payer. This is still the case if your rental income hasn’t gone up.

Whether you have a large property portfolio or just one rental property, it should be treated like a business. If you have lending on the property, you need to have a strategy in place to make that lending work for you that you review regularly.

Knowing and understanding what all your options are is key to making the right decision about your property investments, and a well-managed portfolio will always remain a profitable business.

Getting specialist advice from independent letting agents, mortgage brokers and accountants is vital in this process.”

If you are looking to invest in Buy To Let in Swansea, or would like to be put in contact with specialist tax and mortgage advisers, please click here to email us. 

Sources: Landlord Knowledge on Fixed Rate Popularity / Landlord Knowledge on Remortgage Encouraged / BBC 

Related: Relief for Landlords in form of Finance Act 2017 / Swansea House Prices Below 2007 Peak, but Rents Up 26%

Let’s face it; a rental property is never going to feel like home if you don’t put your stamp on it and inject some of your personality and style.  My top tips will transform your rental into a home that you love by helping you invest in some key items - and the best thing is, they’re all things you can take with you if you move!

1. A little TLC for your window treatments will go a long way to transform any room.

Curtains are the perfect solution to add a pop of colour, and they can make the room look larger if you place your curtain pole as close to the ceiling as possible. 

Always opt for long curtains where possible, as this alludes to high ceilings and more space.  Buy your curtains longer than you need and take the hem up or ask your curtain maker to leave an extra-large hem; so that if you do move the hem can be let down and lengthened.

Store your curtains on the wall so that you let as much light into the room as possible, creating a bright and airy space. To do this, you will need to buy your curtain pole about 60-70cms larger than the window itself. The best thing about this is that if you move, the likelihood is that your pole will be large enough to fit any window!  

Blinds are a little less flexible if you move, as they are fitted to a window recess, and therefore give you less leeway to adjust the size.  For a long-term rental, though, Roman blinds might be a good choice as they take very little fabric and are an economical alternative if you want to create a homely space for very little money.  A simple and cost-effective pelmet would finish the room, framing the Roman blind and softening the window aperture - a perfect combination!

2. Consider lighting; it sets the tone.

Depending on your room configuration, a low hanging statement light over a dining table or kitchen island could be a great way to create an intimate setting (and there is no passing traffic to knock it!)

For your entrance way and landing, opt for very simple lighting, and save the expense for your lounge and master bedroom.  In your lounge, try and keep your lighting flush to the ceiling to create the sense of space and head height. 

3. Bespoke headboards

Perfect your rental bedroom with a headboard that will give your home that wow factor!  You will love it so much that you’ll certainly want to take it with you if you move! 

Choose a simple shape (not too tall or wide to ensure you can get it up a staircase).  Buy a divan base and your mattress, and what you save on a boring mass-produced baseboard and headboard, you can spend instead on a bespoke, fabric-covered headboard that suits your style perfectly. 

4. Invest in some cushions

Cushions are an inexpensive way of transforming any space, and will make any home luxurious if you choose the right colour and some textured fabrics.

Opt for feather cushions (unless you are asthmatic) as they last forever, and keep them plump by grabbing opposite corners of the cushion and pushing them together – voila!

Layer your bed up with an assortment of cushions for an instant designer finish! A throw draped over the bottom of the bed also works a treat.  Again, they’re easy to pack up and take with you.

This article was written by Elizabeth of Elizabeth Styles Soft Furnishings. If you would like some professional advice on how to put your mark on your rental property, please get in touch for a free, friendly home consultation with Elizabeth. You can call her on 07504 528363, or click here to email her. 

The centrepiece of the re-development will be a 3,500-seat Digital Arena, which will be built on Wellington Street in Swansea City Centre. The arena is expected to bring in over 200 events a year.

Transforming Swansea

This is the first phase of the transformation and will go on to include the construction of a 5-star hotel, landmark digital bridge, extensive parking, and plenty of public space - as well as a new coastal park with cafes and play spaces for children. More retail and additional housing will complete the development, which is expected to finish in late 2020.

 It is all supported by the &1.3bn Swansea Bay City Deal.

Check out the latest digital fly-through by Swansea based company, Icreate!

More for Mumbles?

Meanwhile, restoration work has begun on Mumbles Pier that will make it a “world class” attraction for many years to come.

The company that owns the Pier, Amecco, is planning to spend &3.2 million restoring the 120-year-old structure.

Detailed plans have also been submitted for a &35 million scheme incorporating the foreshore and headland, which would result in an extended sea wall, a new boardwalk between the Pier and Knab Rock, new sculptures, and over 60 additional parking spaces – a blessing for anyone who has ever tried to park in Mumbles.

A new five-storey building, comprising 31 hotel rooms and 11 serviced holiday apartments, is to be build in the former limestone quarry on the headland. A further 26 flats would be built on the foreshore between the Pier and Mumbles Amateur Rowing Club.

Once completed, this restoration work will increase not only the profile of Mumbles, but also the desirability to live and work in the picturesque Welsh fishing village.

All of this positive development of Swansea’s infrastructure and surrounding areas will only increase demand for quality rental accommodation. If you’re looking to invest in buy-to-let in Swansea, or would like a free review of your property portfolio, please give us a call in the office on 01792 430100, or click here to email us.

Source: Wales Online

Image Source: Insider Media

Related: Mumbles - Best Place to Live in Wales / Kingsway Regeneration to Boost Rental Demand / Swansea's &500m and What it means for the Rental Market

This month, I have found this lovely 2 bedroom starter home in the popular location of Garden Village, just on the outskirts of Gorseinon. With excellent links to the M4 and Swansea City Centre, and a larger-than-average (flat!) rear garden, this property would be highly desirable to young families.

Click here to view the brochure.

With a light refurbishment, I believe the property would achieve around &550pcm. The asking price currently &89,950, but if an offer of &85,000 was accepted, this would equate to a yield of just over 7.7%.

We find that properties in this location tend to attract very long-term, professional tenants who have family in the area and are looking to find a place to settle, which makes this an ideal property to consider if you are looking for long term tenants. 

If you are considering buying an investment property in Swansea and would like some free advice, please get in touch - you can email me by clicking here. 

Image Source: No. 86 Estate Agency

Related: 5 Top Tips for Buying Property at Auction / What Makes a Good Property Investment in Swansea?

Average Asking Rents, August 2018