Build your portfolio
Investing in buy-to-let properties has proven to be a successful investment vehicle, providing both a steady income stream from monthly rental and also long-term capital growth.
To purchase a buy to let property the investor will require a deposit (usually 20-25%) and the property will be required to provide a rental income that exceeds the monthly mortgage payment – usually by in excess of 25%. (This percentage could be higher for higher rate tax payers).
Most Buy To Let investors purchase the property using an Interest Only mortgage but this will depend upon the individual’s own situation and investment requirements.
Most lenders will require that the investor already own a property and earn sufficient income – usually £25,000 pa.
We’ll explore the strategies and essential information you need to make informed decisions and build a successful property portfolio. Let’s get started on your path to financial prosperity through buy-to-let investments.
The Financial Conduct Authority does not regulate some forms of buy-to-let mortgages
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If you’d like to find out how much your monthly mortgage payment will be, head to our mortgage calculator and get an instant estimate!
HMO & Holiday Lets
As well as simple Buy To Lets, many landlords also purchase properties for multiple occupation of for short-term or holiday lets. Properties let for these purposes require specialist mortgage products tailored to suit the property use. At BTL Mortgages Scotland we are able to source mortgages suitable for properties used for HMO properties as well as for short-term letting or holiday home investors.
Ltd Company/Incorporation
Due to tax legislation, it often makes sense for landlords, particularly those with larger portfolios to purchase properties in a Ltd Company. There can also be benefits for inheritance by using this arrangement. Most of the lenders that specialise in this area are happy to lend to new companies, although most will require these to be Special Purpose Vehicles (SPV), with the specific purpose of property rentals. Most of these lenders are willing to take on larger portfolios and lend higher amounts. We also work with lenders that are able to provide same day remortgages.
Landlords that currently own a portfolio of properties in their own name may wish to incorporate them into a Ltd Company to take advantage of the tax benefits that brings. By doing so the landlord would have to sell their portfolio that will then be purchased by the Ltd Company. Normally when properties are sold, they would be liable for Capital Gains Tax, and when they are purchased would be liable for Land and Buildings Transaction Tax as well as Additional Dwelling Supplement. With careful planning however, it may be possible to avoid or reduce both of these taxes.
At BTL Mortgages Scotland, we have many years’ experience of incorporating portfolios and helping landlords to gain from the tax benefits.
Boost your Portfolio
20 years experience of working in the Scottish Buy To Let market. Incorporation of large portfolios. Working closely with our clients to help grow their portfolios.
