A crackdown on mortgage interest relief for buy-to-let owners could force landlords to avoid these new measures by owning properties through corporate structures. This summer’s budget saw the chancellor announce that tax relief on buy-to-let mortgage interest payments would be restricted to the basic rate of income tax. Many mortgage brokers think this will drive some landlords to transfer their existing portfolios into corporate structures as these will still benefit from tax relief on mortgage interest. We asked one of our regular clients how they saw this new legislation effecting their business. The reply was simple, “yes this is a minor setback but it will not stop me continuing to invest in this area”. “I am looking at this as a long term plan and can only see positive returns in the future”. “I will be seeking advice from my accountant as to the best route for me to take”. It would seem likely more landlords will be setting up limited companies to purchase buy-to-let property in the future. Returns on investments can reap as much as 7-9% per annum and this set back can be overcome is the general feeling within the industry. Mortgage choices There is a huge choice of buy-to-let mortgages currently on offer and this seems to be growing by the day. Currently there are over 800 different products to choose from and selecting the right one for you can be a daunting task. We always recommend if you are thinking about a new or re-mortgage to contact an experienced broker to assist you with your choice. Can we help? If you would like assistance with your buy-to-let mortgage please do give one of our expert advisers a call. We have years of experience and look forward to being of help to you.
