Mortgage advice for Buy to Let investors

By on Tuesday, July 14th, 2015 in Advice for Landlords, Finance and Mortgages.

In the wake of George Osbourne’s Emergency Budget on July 8th, and the tax changes that effect Buy to Let investors, we asked Vince Sammon of Sammon Mortgage Management for his view on the implications for higher rate taxpayers especially in light of a potential interest rate rise in 2016

“As the additional tax charges will be phased in over a four year period, higher rate taxpayers should be in no rush to sell their BTLs, however most will want to reassess the viability of their investment.

Higher rate taxpayers with highly geared mortgage commitments & lower yields will be hit hardest by the change. These landlords may be more likely to decide to sell when they deem it an appropriate time. Before they do however, they should consider protecting their investment against the possibility of rising interest rates, with now an ideal time to lock into a historically low Fixed Rate & restructure their Buy to Let mortgage.  For Example: 5 year Buy to Let Fixed Rates start at 3.39%.

Higher Rate Taxpayers should consider purchasing any new Buy to Let property via a limited company. However if you already own an investment property, the cost of transferring it to a company could be prohibitive.

The main tax benefit of holding properties within a company is that rental profits are taxed at the corporation tax rate of just 20pc. Please note that if you buy a property worth more than £500,000 in a company there is a 15pc stamp duty charge – much higher than the rates for personal investors – however broad exemptions are available. Limited Company Buy to Let Fixed Rates start at 2.89% for 2 yrs.”

To find out more about the topics covered above, contact me on the details below.

Vince Sammon

Sammon Mortgage Management

Direct Tel: 07866 498404


Vince Sammon

Sammon Mortgage Management are an Independent mortgage broker situated in the City of London.They are a whole of market mortgage broker offering Mortgage & Protection advice tailored to suit your needs and circumstances. Their advisers will not only search the whole of the market, they will also be able to offer you exclusive products that will not be available directly or through other mortgage brokers.
Mortgage advice for Buy to Let investors