Buy to Let

Buy to Let Mortgages

We recognise that buying a property to rent requires expert guidance. At The Mortgage Advice Professionals (MAP), we are committed to making your experience one of ease, variety, and professional insight.

Whether you're a first-time buyer looking to invest in a rental property or an experienced landlord, we will provide you with the expert advice and support you need. Not all Buy to Let Mortgages are regulated by the Financial Conduct Authority.

Calculating your costs

In addition to your mortgage payments, you may also need to cover the following costs:

• Building insurance
• Contents insurance (if your property is furnished)
• Maintenance costs
• Periods when you are receiving no rental income because the property is empty or the tenants have fallen behind with their payments
• Increases in your mortgage repayments due to a rise in interest rates, which you may not be able to recover immediately from rent increases
• The profits from renting property are taxable but you may be able to offset some of the costs you incur as a landlord against tax

You will be required to pay the following taxes: Income Tax, Stamp Duty (when purchasing your property), and Capital Gains Tax (when selling it). Additionally, there may be an inheritance tax liability upon your passing.

For more information on the tax treatment of income from rented property, it's recommended that you seek advice from a qualified tax specialist. You can also visit www.gov.uk/browse/tax. Please note, you are about to be directed to a new site that is not regulated by the Financial Conduct Authority. We do not endorse, nor accept responsibility for the accuracy or content of any external sites linked to this site. Click only if you wish to proceed.

HM Revenue and Customs practices and the laws regarding taxation are complex and can vary based on individual circumstances. Additionally, these laws are subject to changes that may not be predictable.

Choosing the right property

Now that you know what you can afford, you can start your search. The Mortgage Advice Professionals (MAP) will be happy to refer you to one of their colleagues

• It's important to thoroughly research the area where you plan to purchase your property. You can either conduct this research yourself or hire a specialist letting agent to assist you. If you choose to do it yourself, you should contact local estate agents, employers, and the local authority for information.
• Families have different needs compared to couples or single individuals. Most tenants are working professionals, often on company transfers or overseas relocations. It's essential to ensure they are thoroughly referenced. If you're working with an agent, be clear about the type of tenant you'd like to rent your property to. However, keep in mind that being too specific with your criteria may result in a longer search for a tenant.
• Desirable properties are typically well-located, with easy access to public transport, shops, bars, schools, and other amenities, as well as nearby parking options. When searching for a property, it's important to remember that you won't be the one living there. Approach it with an objective perspective and consider what tenants would look for in a property.
• You should consider purchasing a property that is the right size for people seeking rental accommodation in that area.
• A well-maintained property will attract more demand than one that is in poor condition. Therefore, a newer property might be a better option if you have limited time or no interest in DIY.

Managing your property

Once you've selected your property, you'll need to decide who will manage it for you. Ask your The Mortgage Advice Professionals (MAP) adviser to connect you with a Lettings specialist, who can provide the right services to ensure your letting experience goes as smoothly as possible.

*The products and services promoted here are not part of The Openwork Partnership offering and are offered in our own right. The Openwork Partnership accept no responsibility for this aspect of our business. These products are not regulated by the Financial Conduct Authority.

Your aim will be to cover your costs and make a profit. It is a good idea to talk to a Mortgage Adviser before you look for properties as lending criteria will differ and rental charges are a key factor. Research the market conditions thoroughly as charging too high a rent will put off prospective tenants.

If you choose to manage the property yourself, you will be responsible for:

• Finding tenants
• Checking tenants references
• Writing a tenancy agreement
• Collecting the rent
• Maintaining the property and any furniture provided
• Dealing with any problems
• Carry out repairs to the property
• Ensure the safety of gas and electrical appliances
• Ensure that any the furniture and furnishings meet fire safety requirements