Buy To Let Standard (Single Let Own Name)
Buy To Let (BTL) Mortgages are mortgages for properties which are let out to tenants.
There are increasing changes in this market, with the implementation of the NEW Buy To Let Mortgage regulation in 2017 and changes in tax for landlords.
- Portfolio Landlord (4 or more properties)
- Small Landlord (up to 3 properties)
The NEW Buy To Let regulation in 2017 means limitations in the mortgage advance. This is based on the rental income and the lenders defining of whether a landlord is small or a portfolio landlord when underwriting the mortgage. Additionally, there is also the distinction of a ‘Consumer Buy To Let mortgage’ in recent years.
Changes in tax rules now mean mortgage lenders consider your tax bracket when working out the mortgage advance available based on the rental income. It is becoming more and more popular to manage the Buy To Let property via a Limited Company. But please seek tax advice first.
Limited Company Mortgage rates are currently higher than Buy To Let mortgages in your own name. However, when considering the tax implications on the ‘Tapered Relief on Interest Payments’ from 2017 to 2020, you will be better off. Furthermore, higher mortgage advances are available to five year fixed mortgage products within a Limited Company. However, this is only where the lender is regulated by the Prudential Regulation Authority and the cast majority are.