Buy to let mortgages are there primarily for landlords who wish to let their property to tenants, as a business agreement. Landlord buildings insurance comes hand in hand with this kind of agreement, and there are some things you should know before entering into this kind of legal contract and situation.
The buy to let market boomed in the United Kingdom about ten years ago, thanks to rising property prices and the accessibility of funding for buy to let projects. The created a surge of new property investors. This was primarily because of tax advantages that became available in the UK. The rental income will be treated like a salary by the Inland Revenue, and hence will be taxed at between 22 and 40%. Landlords, however, are able to deduct costs from the taxable part of their income (this is known as ‘expenses’), making the overall tax paid significantly less than it would have been otherwise. As a landlord, you are able to claim for purchases that are necessary for the success of your property business venture.
There are many mortgages available out there, too. With so many different deals on offer, it can be difficult finding the right one for you. However, if you do the right amount of research you’ll be able to find the right mortgage for you and your business. Of course, the biggest obstacle will be passing the assessment made by the mortgage provider. Be sure to provide the correct details, and have them at hand during your application. Furthermore, make sure that everything is in order before applying for the mortgage. If anything is incorrect, or the building is not fit for purpose, then you might find that there will be difficulty in obtaining your mortgage and/or landlord buildings insurance.