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No matter if it’s your first foray into the property investment market or another step to building your portfolio, you understand that it’s all about finding the deal that’s right for your circumstances and making it happen in a smooth and easy manner. Asset Plus’ breadth of experience and market knowledge ensures you don’t miss a beat.

asset plus+ offers a breadth of experience and their full market knowledge ensures you don’t miss a beat.

Property is still seen by many as one of the most effective and attractive investments that someone can make. Finding the right property is essential but so is finding the right mortgage and having the confidence it will complete smoothly.

asset plus+ are experts and have a complete understanding of the full market for buy to let mortgages as well as experience in making them happen, which means not only will you get the right deal, but you’ll also ensure that the process of completing the deal happens as efficiently as possible.

If it’s your first buy to let, we can guide you smoothly through the process, avoid any complications and deliver the right deal, leaving you to focus on your plans for the property.

As a property landlord, I have used asset plus+ for over 10 years now. With their excellent service I see them as part of my relay team: I find a property, pass the baton to asset plus+ to arrange the finance and insurance and they then pass the baton to the solicitor to exchange and complete on the property, which in turn gives me the keys to a new property.  With regulars reviews in place for my existing borrowing, Paul and the staff at asset plus+ are an integral part of my team!

Mr I Matthews

London

Even as an existing investor, we’re here to work in tandem with you, identifying the best mortgages available and ensuring that everything completes within an agreed timescale.  As a portfolio landlord you understand that the key to success is keeping abreast of new legislation changes, regularly reviewing your portfolio and specialist insurance requirements. We support you in achieving that.

 

Common Questions about Buy to Let

No matter if it’s your first time, or you’re looking to grow your portfolio, it’s good to know some of the areas that need extra focus.

As such, here are several of those questions we get asked all the time about Buy To Lets, to give you some background on the best route forward.

How does it work?

Buy to Let mortgages mean buying a property where you will not live in, but in fact rent/let it out. As with a residential mortgage, it’s your responsibility to meet the mortgage repayments each month, even when you receive no rental income.

The main difference is that with a buy to let mortgage, how much you can borrow is based on how much rent the property will generate, as opposed to residential mortgage that look at your income and outgoings to assess how much you can borrow.

With a tenant in and paying rent, the rental income should cover the cost of the mortgage, but good contingency planning is required to ensure if the property is empty or requires renovations, that the mortgage payments can still be met.

What are the costs?
Costs include Lenders valuation and arrangement fees, solicitor costs and possible property management fees. In addition, recent changes have seen additional stamp duty now payable on second properties, so careful planning before becoming a landlord is advisable. Speaking to asset plus+ before jumping in can provide you with full information based on your own personal circumstances.
How much deposit do I need?
The minimum is 15%, however to get the most competitive mortgage rates a 25% deposit is recommended.
How does your personal tax impact buy to let?

The income you receive from your buy to let is taxable and should be declared through your self assessment tax form. The tax on your income is then charged in accordance with your income tax banding (20% for basic rate taxpayers, 40% for higher rate, and 45% for additional rate).

You are able to reduce your tax bill by offsetting certain costs associated with maintaining a rental property against the rental income that you receive. These costs can include:

  • Mortgage interest (but not capital repayments).
  • Ground rent and water rates.
  • Fees such as letting and management fees, accountant and legal fees.
  • Costs of property repairs and maintenance.
  • A ‘wear and tear’ allowance for furnished properties.
  • Buildings and contents insurance.

The Summer Budget in 2015 introduced changes to the amount of tax relief that is available for interest on buy-to-let mortgages. Landlords paying higher (40%) or additional (45%) rate tax could claim tax relief at their highest rate, but the Budget changes mean that tax relief will only be reclaimed at the basic rate (20%), whatever rate of tax the landlord pays.

So, if you’re a landlord who only pays basic rate tax, this change won’t affect you, but if you pay at 40% or 45%, you’ll be losing out. The available tax relief will reduce over the subsequent three tax years and will be fully in place by 2020/2021.

For further information you can download out Tax guide for buy to let investors, however, you would be well advised to get specialist tax advice from a qualified accountant before proceeding with any changes to buy to let investments.

Stamp duty on 2nd properties

 

From the 1st April 2016, anyone purchasing a property in addition to your main home, will pay an additional 3% stamp duty for the first £125,000 and 5% (instead of 2%) on the portion between £125,001 and £250,000 and 8% on the amount above £250,001. For properties valued at £925,000 – £1.5m it’s 13% and above £1.5m it’s at 15%.

Why use a broker?

If you have read through some of the criteria for buy to let mortgages already, you are beginning to see it is not straight forward. Our experts at asset plus+ have over 25 years experience in dealing in the market and keeping abreast of all the changes. In addition many lenders, knowing the complexity of this market, will only accept business through qualified mortgage brokers, therefore, to be able to shop across the whole of this market it pays to speak to Asset Plus.

What type of property can I buy?
Before rushing in to purchasing a “bargain” property that you think you can do up and rent, be aware there are some properties that can be difficult to get a mortgage on. Flats above shops, high rise tower blocks, properties with structural damage are just some examples that may not be easy to mortgage.

 

 

 

The key to good property hunting is to do your research before buying. By thinking about who would rent it, young families, commuters or students, and what would make the property have a strong rental potential, perhaps, good transport links, it’s vicinity to a university or good schools, can help you find the best properties for your investment.

Can I buy multiple properties straight away?
Yes – subject to lenders underwriting. It may be sensible to take advise from a suitably qualified accountant. We can refer.
What type of tenants should I be looking for?
Lenders underwriters prefer professional referenced tenants on assured shorthold tenancy
How do I rent out my property?
We can provide introductions to lettings agents, who will explain the process and costs in detail.
How much can I borrow?
The main criteria lenders look at when assessing a buy to let mortgage is the achievable rental income.
Do I need my own home to do Buy To Let?

No – we can offer first time buyer buy to let mortgages

What other aspects do I need to consider?

Protecting your investment is as important as getting the best mortgage. Buildings Insurance, Landlords Insurance and Rent Protection are all available to discuss with Asset Plus.

Can I rent out my existing property to buy a new one…

We can even help you switch from a residential mortgage to a buy-to-let should you be moving out but want to hold onto your property.

Is age a limiting factor for BTL?
Not really – We can provide a new mortgage for people up to age 84.

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About Asset Plus

We are Experts – we know the market and the people we serve. We are Bespoke – every person and circumstance is unique – and needs to be treated as such. We are Transparent – we keep you informed every step of the way. We are Accessible – we’re approachable, local & friendly, and look to build great relationships with our customers – not keep them at arms length through call centres and anonymous communication. We are Invested – it’s about knowing that there is a bigger story, understanding what it is, and helping you achieve your dream. We are more than just an Asset – because we know it’s about more than just the money...

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Disclaimer:

asset plus+ Mortgage Solutions is a trading style of asset plus+ Financial Ltd, an appointed representative of The Right Mortgage Limited, which is authorised and regulated by the Financial Conduct Authority. asset plus+ Financial Ltd is registered in England no: 05859399. Registered Address: Umpleby Accountancy, Basepoint Business Centre, Bridge Road, Haywards Heath, West Sussex RH16 1UA.

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There will be a completion fee for advice. The precise amount will depend upon your circumstances but we estimate that it will be £300.

Your house may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Some forms of buy to let mortgages are not regulated by the Financial Conduct Authority.

The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.


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