You own the property personally and are directly responsible for managing the rental income and any associated costs. The mortgage is in your name and lenders will assess your personal financial circumstances as part of the application.
Lenders primarily assess affordability based on the rental income the property is expected to generate. This typically needs to cover 125% to 145% of the monthly mortgage payment, though the exact requirement varies between lenders.
Most buy to let mortgages require a minimum deposit of 25% of the property value. A larger deposit will give you access to better rates and a wider choice of lenders.
As a personal landlord, rental income is subject to income tax at your marginal rate. Mortgage interest relief has been significantly reduced in recent years and is now limited to a basic rate tax credit. It’s worth understanding the tax implications before you commit, we’d recommend speaking to an accountant alongside taking mortgage advice.
When you sell a buy to let property owned in your personal name, any profit is subject to capital gains tax. Current allowances and rates should be factored into your overall investment calculations.
Unlike a limited company structure, personal buy to let means your personal finances and the property’s debts are not separated. This is worth considering as part of your wider financial planning.
Personal buy to let mortgages are generally more straightforward to obtain than limited company equivalents, with more lenders operating in this space and typically more competitive rates available. We’ll search the whole market to find the right deal for your circumstances.
Whether you’re buying your first investment property or growing an existing portfolio, we’ll search the whole market and give you an honest picture of what’s achievable. No pressure, just straight advice from people who know the market.
We aim to respond to all enquiries within one working day. If your matter is urgent, please call us directly.
