Buy-to-let financing

A buy-to-let mortgage is simply one that will be used to purchase a property that you will in turn use to generate an income.

Historically the buy-to-let marketplace has always been complicated, however, from 1 April 2016, new rules are set to make buy-to-let mortgages more elusive.

In his Autumn Statement, George Osborne announced that there would be a new stamp duty charge on buy-to-let properties and second homes. Purchasers will pay an extra 3% in stamp duty which means that on a property costing £175,000, the stamp duty will rise from £1,000 to £6,250.

 In addition a new rule requiring Capital Gains Tax to be paid within 30 days of selling a property will be introduced from April 2019.

From next year, rules that allow landlords to offset all of their mortgage interest against their tax bill will be phased out, which means that by the end of the decade higher-rate tax payers will get half the relief they do now.

As these changes come into legislation and the buy-to-let market continues to evolve, independent financial advice has never been more important.

For independent advice tailored around your current investments and your plans for the future, contact a Fairstone adviser today.