Have you thought about a Buy–to–Let mortgage?
Have you thought about a Buy-to-Let mortgage?
Buy-to-let (BTL) mortgages are for landlords who want to buy property to rent it out. The rules around buy-to-let mortgages are similar to those around regular mortgages, but there are some key differences. Get in touch today to speak to our expert mortgage advisers for further advice!
You can get a buy-to-let mortgage under the following circumstances:
- You want to invest in houses or flats.
- You can afford to take and understand the risks of investing in property.
- You already own your own home, whether outright or with an outstanding mortgage.
- you have a good credit score and aren't stretched too much on your other borrowings, for example, credit cards.
- You're under a certain age. Lenders have upper age limits, typically between 70 or 75.
Buy-to-let and tax (Capital Gains Tax)
- If you're a basic rate tax payer, CGT on buy-to-let second property's is charges at 18% and if you're a higher or additional rate tax payer it's charges at 28%. With other assets, the basic rate of CGT is 10%, and the higher rate is 20%.
- If you sell your buy-to-let property for profit, you will usually pay CGT if your gain is higher then the annual threshold is £12,000 (for the 2020/2021 tax year). Couples who jointly own assets can combine this allowance, potentially allowing a gain of £24,000 (2020/21) to be made in the current tax year.
- You can reduce your CGT bill by offsetting costs like Stamp Duty, Solicitor and Estate agent fees or losses made on a sale of a buy-to-let property in a previous tax year by deducting these from any capital gain.
For more advice on Buy-to-let mortgages get in touch with us today on 028 9332 2822 or email us at simon@financialforesight.co.uk! All meetings are free! Call in today for a chat at our expense.
Source: https://www.moneyadviceservice.org.uk/en/articles/buy-to-let-mortgages