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.
More than mortgages, talk to me about: Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance General Insurance | Valuations | Conveyancing | Wills | Home finders
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.
We recommend you seek professional advice with regard to any of these topics where appropriate.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY DEBT SECURED ON IT.
John Charcol is a trading name of John Charcol Limited and its Appointed Representatives. John Charcol Limited is authorised and regulated by the Financial Conduct Authority. The Financial Services Register number is 665649. Registered in England No. 9157892. Registered office address for John Charcol Limited is 5th Floor, Cutlers Exchange, 123 Houndsditch, London, EC3A 7BU. The FCA does not regulate some investment mortgage contracts. Calls may be recorded for training and monitoring.