{"id":17738,"date":"2018-06-14T12:15:55","date_gmt":"2018-06-14T11:15:55","guid":{"rendered":"https:\/\/www.buyassociation.co.uk\/?p=17738"},"modified":"2018-06-14T12:15:55","modified_gmt":"2018-06-14T11:15:55","slug":"maximising-mortgage-interest-tax-relief-for-landlords","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-us\/news\/maximising-mortgage-interest-tax-relief-for-landlords\/","title":{"rendered":"Maximising mortgage interest tax relief for landlords"},"content":{"rendered":"

As landlords continue to get to grips with the rollout of mortgage tax relief changes as a result of new Section 24 tax rules, some lenders are offering a helping hand to minimise the effects.<\/strong><\/p>\n

Up until recently, landlords have had a major tax advantage, only having to declare rental income after their buy-to-let mortgage<\/a> has been paid. Since April 2017, the way rental income is declared has changed, resulting in significant tax implications<\/a> for landlords. The outlook for landlords\u2019 tax bills has been gloomy, but one building society has introduced a new product that offers some short-term respite.<\/p>\n

Mortgage interest tax relief is set to reduce each year<\/a> until April 2020; this year landlords will be able to claim 50% of their mortgage tax relief. In the 2019\/20 financial year, this will reduce to 25%, before the introduction of the new tax credit in April 2020 when they will no longer be able to deduct any mortgage expenses from rental income<\/a>.<\/p>\n

Maximising tax relief for 2018\/19<\/h4>\n

Leeds Building Society has launched a new mortgage product specifically designed to help landlords maximise their tax relief this year. Buy-to-let mortgages with inflated fees to compensate for lower rates have been added to their product portfolio; two-year fixed-rate mortgages with a \u00a32,499 upfront fee, with rates of 1.44% at 60% loan to value (LTV) and 1.69% at 70% LTV. Both products come with free standard valuation and fees assisted legal service.<\/p>\n

Leeds Building Society\u2019s director of product and distribution, Jaedon Green, said: “The underlying economics of buy-to-let are changing<\/a> as the government\u2019s tax changes start to bite. Fixed rate products continue to look attractive, offering certainty<\/a> over funding costs, but the gradual introduction of the tax changes and tapering off of tax relief potentially creates opportunities. The society has recently strengthened its dedicated buy-to-let mortgage underwriting team to further enhance the application process, as well as simplifying its criteria for this form of lending.”<\/p>\n

Short-term respite<\/h4>\n

These deals are designed specifically to minimise the interest payable<\/a> next year. According to the lender, these fixed-rate products will enable landlords to front-load funding costs and maximise mortgage interest tax relief. Whilst this is only a short-term benefit, it does offer landlords some breathing space to review their long-term<\/a> financial plans.<\/p>\n","protected":false},"excerpt":{"rendered":"

As landlords continue to get to grips with the rollout of mortgage tax relief changes as a result of new Section 24 tax rules, some lenders are offering a helping hand to minimise the effects. Up until recently, landlords have had a major tax advantage, only having to declare rental income after their buy-to-let mortgage… Read more »<\/a><\/p>\n","protected":false},"author":3380,"featured_media":5931,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,26],"tags":[176,341],"class_list":["post-17738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-tax-mortgages-money","tag-mortgage-tax-relief","tag-newsletter"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/17738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/users\/3380"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/comments?post=17738"}],"version-history":[{"count":0,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/posts\/17738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media\/5931"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/media?parent=17738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/categories?post=17738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-us\/wp-json\/wp\/v2\/tags?post=17738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}