A1 Mortgage Shop

A1 Mortgage Shop offer completely independent mortgage advice. We search the UK mortgage market to find you the most competitive deal, one that will match your needs and circumstances.

We are directly authorised and regulated by the FSA (Financial Services Authority). Our FSA number is 455600.

Buy-to-Let mortgages

A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).

More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.

There are now plenty of competitive mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer mortgage deals to fixed and variable rate options.

In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.

Tax implications for buy to let properties

Tax will be charged on income received from rental properties after allowable expenses are deducted. However, you are eligible for tax relief on the following:

• The interest on the mortgage
• Rental insurance
• Any maintenance of the property
• Letting agency fees
• 10 percent of the rental income each year to cover depreciation in the value of furnishings, including sofas and carpets (this does not include fittings such as kitchen units and bathroom suites)
• Professional advisory costs incurred after the purchase of the property.

For more information on tax implications of renting property, you can contact your local tax office for a copy of the Inland Revenue Property Income Manual (PIM)

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A1 Mortgage Shop