Surviving the loss of tax relief on your buy to let mortgage in 2017.

Tax relief on buy to let mortgages will be phased out from April 2017 and a new flat rate of 20% introduced. If you are a landlord, or you own a second home, stamp duty will also be increasing by 3%.

You could be forgiven for feeling a little more than hard done by, particularly if, as a landlord, you are currently claiming tax relief at 40% or 45%. However, there are ways to survive the changes that could mean your property portfolio remains as profitable as possible.

You could:

• Transfer the property into the name of your spouse (if they pay a lower rate of tax).
• Incorporate into a limited company and transfer ownership to that (corporation tax is lower).
• Switch to a low rate fixed rate mortgage deal and reduce your monthly repayments.

Our experienced buy to let mortgage professionals at Deal Direct, are ideally placed to source a low rate, fixed term deal for you. Switching could be as easy as picking up the phone and calling us.

You could successfully survive these changes by discussing all your alternative options with us today. We spend the time thoroughly searching the whole of the market on your behalf for the best possible deal. And, as we are independent mortgage brokers, the advice you receive is completely impartial.

Please bear in mind that Deal Direct are regulated to offer independent mortgage advice but not general financial advice. Therefore, if you wish to discuss the suitability of property as a viable investment, Deal Direct urges you to contact an independent financial adviser. 

In addition, buy to let mortgage applications from:

• applicants whose intention is to benefit from house price growth
• applicants whose intention is to benefit from rental income
• applicants who are letting to buy

will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.

For no-obligation, ‘whole of market’ advice on the latest buy to let mortgage deals, contact Deal Direct.

Call us now on 0800 048 8828.