All have their advantages
and disadvantages relative to the others, however the fixed
rate option is considered particularly attractive to many landlords
as the rental income itself is fixed and a regular profit without
risk from market fluctuations is thereby assured.
The effect of the
credit crunch on the Buy to Let market has generally been to
drive it towards the larger operators, leading many landlords
to merge or to become state-owned. Loans are less freely available
than was once the case and ancillary charges and start-up fees
have often to be factored in. Generally it is the case that
the larger the loan the lower, proportionately, the costs will
No direct tax relief
is available on Buy to Let mortgages, but it is possible to
offset interest payments on a mortgage against tax on rental
income, along with many other expenses such as maintenance costs
and agents' fees.
Anybody making money
on a Buy to Let property sale over and above the annual capital
gains tax limit is obligated to pay Capital Gains Tax at the
flat rate of eighteen per cent.
point is that conditions laid down by Buy to Let lenders are
likely to vary and these should always be taken into account
when sourcing loan funding. For example the property may be
required to meet certain standards in respect of its overall
condition, there may be a stipulation that it is not to be sub-divided
into multiple self-contained units and a maximum number of Buy
to Let properties may need to be adhered to.
If you are
currently looking for an affordable buy to let mortgage quote,
try some of the mortgage websites above and begin your buy to
let mortgage search.