Buy to Let Mortgages
(Personal & Limited Company)
Investing in property can be a complex process, whether you’re buying/re-mortgaging personally or through a Limited Company. At Foremost Financial, we provide expert advice to help you navigate both options, ensuring your investment strategy is sound and maximising the potential returns from your investment.
Your home may be repossessed if you do not keep up repayments on a mortgage.
MORTGAGE
Personal Buy-to-Let Mortgages
For individual landlords, personal buy-to-let mortgages are generally more straightforward but often come with higher personal tax obligations. Rental income is taxed as part of your overall personal income, which can push you into higher tax brackets. Lenders typically require rental income to cover 125-145% of mortgage payments, factoring in your tax bracket. We help you navigate these requirements and secure the best mortgage to maximise your returns.
Why Choose a Personal Buy-to-Let Mortgage?
- Lower Interest Rates & Wider Lender Availability then Ltd company products: More lenders offer personal buy-to-let mortgages with competitive rates.
- Simplified Tax Reporting: While tax obligations can be higher, the process for personal tax returns is simpler than managing corporate finances.
Personal Buy-to-Let Mortgage FAQs
What rental income do I need for a personal buy-to-let mortgage?
Lenders typically require that rental income covers 125-145% of your mortgage payments, depending on your tax bracket.
How is tax calculated on rental income for personal landlords?
Can I offset mortgage interest as a personal landlord?
How do I maximise my returns as a personal landlord?
We help you find competitive mortgage rates, advise on structuring your loan, and guide you through rental assessments to optimise your return on investment.
Let us help you secure the right mortgage for your property investment.
MORTGAGE
Limited Company
Buy-to-Let Mortgages
Using a Limited Company for buy-to-let investments can offer notable tax benefits, including lower corporation tax (Currently 25% in 2024) on rental profits, tax efficient Director Loans and structured succession planning to help minimise inheritance tax liabilities, and the ability to offset mortgage interest and other expenses. However, interest rates are generally higher (around 1% more). We simplify these complexities and guide you to the most appropriate mortgage solutions for tax efficiency and long-term investment success.
Why Choose a Limited Company Buy-to-Let Mortgage?
- Tax Benefits: Pay corporation tax instead of higher personal income tax on rental profits.
- Offset More Expenses: You can deduct mortgage interest and other expenses, increasing profitability. (This is not permitted for personal BTL properties)
- Long-Term Strategy: It is ideal for landlords planning to grow their portfolios and effectively manage inheritance tax.
- Incorporation of Existing Portfolios Into your Limited Company: With specialist tax advice (from a tax specialist), it may be possible to move your current properties into your new Limited Company, enabling you to utilise the tax advantages whilst not paying Stamp Duty or Capital Gains Tax.
Our Limited Company
Buy-to-Let Process
1. Consultation
We assess your investment goals and financial situation, including tax considerations. We will review the yield and leverage of your current portfolio to ensure it meets lender requirements, giving you a clearer understanding of your current position and highlighting potential future opportunities.
2. Tailored Solutions
We find lenders offering competitive rates for Limited Company buy-to-let mortgages.
3. Application and Approval
We manage the application process and ensure a smooth transaction.
4. Completion
We finalise the mortgage and provide ongoing support as your portfolio grows.
Limited Company Buy-to-Let Mortgage FAQs
Why should I buy a rental property through a Limited Company?
What are the drawbacks of a Limited Company buy-to-let mortgage?
Lenders typically charge higher interest rates. However, the long-term tax benefits can outweigh these costs.
Can I transfer my existing buy-to-let property to Limited Company?
Yes, but this process can trigger capital gains tax and stamp duty, so it’s important to consult both a tax adviser and a mortgage expert.