BUY TO LET INVESTMENT MORTGAGES
Mortgage Advice For Professional Landlords
Why are more landlords using Limited companies? In recent times the buy to let industry has been through some significant changes, one being the mortgage interest relief restriction that was introduced for personal ownership in 2017. Prior to April 2017, income tax was payable on your net rental income. Landlords who paid higher rates of income tax, could claim tax relief at the highest rate. However, from April 2020, tax relief can only be claimed at the basic rate of income (20%) regardless of the rate of tax the landlord pays. Companies, will not be effected by this restriction, and so for many it makes this option appear a more sensible way to maximise the investment.
Limited Company Buy-to-Lets. With access to the whole market, we offer a broad range of lending solutions for Limited Companies and Professional Landlords who are looking to either refinance or purchase new investment properties.
Limited Companies, Partnerships & SPV
No limit to the number of properties in portfolio
All size loan values considered
Access to the whole market
Up to 85% Loan to Value
Interest Only Option available
What Tailored Money Can Do. Our experience has allowed us to help many new and existing landlords find the best buy to let mortgages available. We understand that you will be looking to maximise the return on your investment and that your circumstances will be unique to you. By having access to the whole market and experts who specifically look after this sector, we will work closely with you to secure the right deal. For a buy to let to be a good investment, it’s even more important to do the sums, and that’s what we are here to help with.
Changes to the market have made it a lot more complex than simply ensuring rental income covers the mortgage payments. For example, depending on your circumstances and income, you may already have, or are looking to set up a limited company to purchase and manage your buy to let property or properties. We get a wide range of enquiries and diverse customer portfolios looking for buy to lets across the UK, so when we talk to you about your requirements we are well equipped to deal with many different financial circumstances.
Understanding the Market. There is not one fixed rule on borrowing for buy to let mortgages, but generally they will require a significant deposit. Around 20% is fairly standard, although like other mortgages, the more you offer the better the interest rate you are likely to get.
Together with the lenders, we will analyse the potential income from the property and help them decide how much to lend you. To get an idea of what your rental income would be, simply talk to letting agents in the local area and do your own online research to find out how much similar properties rent for. Keep this amount to hand as we will use this to help figure out how much you can borrow and help work out your likely options.
As a quick work-out and to ensure your investment is financially viable, we would work on making a rental income of at least 125% of your mortgage payments. In addition to this, you need to factor in any property maintenance costs, landlord insurance, stamp duty and any letting fees should you choose to use a management company.
If you want to start the process for securing your buy to let mortgage and would like some expert advice, fill in this simple form and one of our team will be in touch the same day.
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