The benefits of a property portfolio mortgage account

Mortgage and loan interest is allowable for tax relief when finance is required to fund the purchase of assets used for business purposes. This includes rental properties.

Do you own two buy-to-let properties, or more?

When a landlord owns two or more properties, it is considered to be a “portfolio” of assets. Subsequently, mortgage lenders and finance brokers have developed a selection of products to wrap up mortgages for a portfolio into one account. It’s a typical set up for doctors and dentists to opt for a property investment portfolio as part of their retirement plan.

The benefits of a Buy-to-Let Portfolio mortgage

Typically, property owners have several properties all with separate mortgages and varying interest rates provided by different lenders under different terms. It can be difficult to keep track of and manage.

A Buy-to-Let (BTL) Portfolio Mortgage harnesses all properties under one account and the benefits can be significant.

  • One agreement. One monthly payment. One mortgage statement. Much less admin and management required.
  • Add and remove properties within the portfolio mortgage with fewer remortgaging requirements and associated costs such as arrangement fees. This includes being able to use equity from the portfolio as a whole to invest into new opportunities.
  • Portfolio mortgages can be taken out as a limited company rather than an individual – and taxed at the lower rate of corporation tax. Potentially big savings!
  • With careful tax planning, equity from your portfolio can be offset against any mortgage on your own primary residence. This further increases the tax relief on the interest in the portfolio whilst at the same time getting you closer to being mortgage free as a family or individual
  We work with specialist financial advisers to the dental and medical sectors that can give bespoke advice around this subject. Call today to be connected to someone who can help you with planning your mortgage more effectively and ensuring you are claiming the most tax relief for your Buy-to-Let investment: 020 7376 9333