Buy to Let Mortgages Tailored to You

For professional or experienced landlords, as well as those with an existing property portfolio, you’re likely already aware that active management can make a big difference to ensuring you’re getting to most from properties you already own. Whether it’s finding the right rate, accessing equity or any other factor in boosting growth, working with the experts is the best way to maximise what you get out of being a professional landlord.

Working with an experienced broker, like Think Plutus, can allow you to get even more out of your properties than you have before. We’re well-versed on all the requirements, standards and regulations set out under the PRA (Prudential Regulation Authority), which state that mortgage lenders should act as underwriters for the portfolio of professional landlords. We offer that service and more, making us the ideal solution for advice, support and underwriting.

For experienced landlords applying for mortgages, this information may be required:

• All details of alternative or personal income sources, including tax returns and evidence of tax payment on rental properties
• A portfolio summary, including the value of the property, the rent received mortgages and addresses. Additional costs should also be included, such as ground rent, letting agency costs and insurance.
• A statement of asset/liability
• A projection of cashflow
• A complete business plan with commentary

Whether you’re acting as a limited company or working as a landlord under your name, gaining expert advice and support to ensure you’re doing it all the right way is step one. At Think Plutus, we guarantee you access to the right help and offer all the feedback needed to expand your property portfolio the right way.

If you’re already a landlord, or you’ve researched what it takes to be a landlord in the UK, then you’ve likely already come across Section 24. Since April 2017, various tax changes and regulations have been amended, which may result in landlords being pushed into high tax brackets, and even losing certain benefits they once had. It’s important to understand the regulations before becoming a landlord if it’s something you’re considering.

Some of the most significant changes that Section 24 included were:

• Landlords with furnished properties can no longer claim 10% wear and tear allowance. Instead, this amount is now based on the actual cost to the landlord as a result of wear and tear
• Mortgage interest can now only be used for tax relief at the basic income tax rate, as opposed to the highest rate of tax overall
• Stamp duty has increased for landlords and second home buyers by 3%
• The stress tests carried out by mortgage lenders on professional landlords must be based on the business plan, portfolio, cash flow and other factors. Part of the purpose of this is to ensure landlords are currently paying their owed tax correctly.
• Landlords can no longer grant new tenancies in properties that do not have an EPC of E or higher

In addition to these regulations, new Government rules are also coming into play that means buy to let investors must become fully licensed as landlords on any properties, rather than over a specific limit. While these rules may seem scary to some, so landlords that are informed, educated and prepared, it’s all just part of the process.

At Think Plutus, we’re fully up-to-date on all you need to know as a landlord. So don’t be afraid to come to us for advice, help and to tap into our knowledge when it comes to considering a buy to let mortgage.