Whether you’re a novice first-time investor or an experienced landlord with a portfolio of properties, it’s critical that you understand how Buy-to-Let mortgages work and the tax implications associated with them.
The majority of Buy-to-Lets (buying property to rent out) are seen as long-term investments. At PW & Partners we like to think of investment properties as mini businesses and therefore they should run as tax efficiently and profitably as soon as possible. After all, nobody knows for certain what the property market will be like in the future.
For starters, Buy-to-Let investors need to be assured that rental income from a property will securely cover the mortgage repayments and all other expenses/outlays. Most lenders require evidence that your projected rent will cover your mortgage repayments by at least 125%.
Basically, it’s important that you do your research! At PW & Partners we have the knowledge, range of services and expertise within this particular area of specialist lending to help you achieve your mini business goals.
You may be looking to re-mortgage your investment property at the end of your fixed/tracker rate in order to save money, raise money to buy another investment property or simply make home improvements to one of your existing properties. Some mortgage lenders will allow you to release equity from an investment property to use as a deposit for an additional property if you are looking to expand your portfolio further.
We retain your Buy-to-Let property information (for each property) and diarise when each needs to be reviewed – offering a helping hand to keep you on top of things and save you time and money.
There are times when selling a property might not be the best option, for example if you are struggling to find a purchaser, your property has dropped in value or you have an emotional attachment and want to retain the property in your family – the solution could be Let-to-Buy. This allows you to let out your current property and raise funds against it to buy another home without being pressurised to sell in a hurry or at a potential loss. We can talk you through your options, giving you a clear indication of how much you could borrow and the associated costs.
Some Buy to Let mortgages are not regulated by the Financial Conduct Authority.