The buy to let market has changed considerably in recent years with more changes on the horizon. If you are thinking about buying a property to let, there are a number of things that need to be considered. Contractor Mortgages Made Easy can advise you on the best buy to let mortgages and help with the mortgage process once you are ready to move forward.

The Changes

  • Stamp Duty

From April 2016 buy to let landlords will need to pay 3% extra on top of every stamp duty band when buying an additional property.

  • Mortgage Interest Relief

The current mortgage interest relief perk is soon to be removed. Currently landlords can claim for interest on buy to let mortgage payments. This essentially allows individuals to offset the interest against the rental income, leaving them to pay only their marginal rate on the profit.

2017 will see the maximum tax relief limited to 20%.

Despite the changes there are still a number of benefits to building up a property portfolio.

  • Demand

Whatever happens to the mortgage market, there will always be a demand for renting. The number of tenants continues to increase year on year. This is due to a number of reasons from rising house prices to the flexibility that renting offers.

  • Record low rates

Mortgage rates for both residential and buy to let are still at record lows, and the Bank of England base rate is showing no signs of moving. In addition, landlords can benefit from the increase of competitive deals available in the market.

There is also the option of using your limited company to obtain an additional property. However, there are upsides and downsides to holding your buy to let portfolio in a company structure. For more information have a read through our guide.

For more information about a buy to let mortgage and to find out what is available to you, please contact us on 01489 555 080 to speak to a specialist mortgage consultant.