Reasons to get a Buy to Let Mortgage

Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.

Here are some benefits:

  • Rental Profit
    One of the main advantages is the potential for earning an income from rental income. If the rent you charge covers your mortgage repayments, you essentially have someone paying your mortgage for you. 

  • Increased Property Value
    Over time property generally increases in value. Although this is not a guarantee, many investors do benefit from capital growth when they sell the property in the future.

  • Tax Benefits
    You can claim tax relief on mortgage interest payments in some instances and there are other tax advantages if you put your properties into a limited company. This means you could reduce the overall tax costs related to your investment. 
  • Builds your Portfolio
    Adding a property to your investment portfolio can diversify your assets, and reduce the risk of having all your investments in one place. 

  • Planning for Retirement
    Income from your rental property can provide a source of income during your retirement years.

We understand that people have mixed views on Buy to Let mortgages, especially following the recent stamp duty rate changes announced for those looking to purchase an additional property. It is important to do your research and think about both the benefits, and possible risks.

To find out if it is right for you, give our experts a call on 01268 507477.

Recent posts

According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes. 

More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.

There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.

The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers. 

Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer. 

A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.

Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.

The Financial Conduct Authority (FCA) has shared new changes to mortgage rules with the aim to simplify remortgaging, and encourage competition within the mortgage market.