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Should I take out a Buy To Let mortgage?

Posted on 24 March 2013 by Gary


I am buying a flat to rent as an investment . I can pay for it (£500K) in cash but should I take out a mortgage as I think I can offset the mortgage payments against the rent payments therefore reducing tax to be paid on the income ? Regards, G Player

Gary,

It is certainly worth exploring the tax benefits of taking a Buy To Let mortgage on the property. Typically most lenders cap the borrowing at 75% of the property's value, though there are a few that go slightly higher. The actual amount is usually based on the rental income that the property generates, and is based on a percentage of the monthly payment. Also most lenders require you to have a minimum earned income. As long as you meet these requirments, there's no reason you shouldn't be able to get a Buy To Let mortgage.

If you'd like to talk in more detail about the option open to you, then please let me know and I'll arrange a convenient time for one of our consultants to contact you.

Regards,

Simon

simon.collins@johncharcol.co.uk

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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

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