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
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.
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