Anyone who would like to purchase a property for investment purposes can apply for a buy to let mortgage. However, some lenders may request that applicants have some experience as a landlord whilst others would not offer a first time buyer a buy to let mortgage. A buy to let mortgage may also be an option for anyone who is in ‘tied accommodation’ for example if you work in the army or you are a farm worker or boarding school teacher.

Much like mortgages to purchase your primary residence, buy-to-let mortgages are available with fixed (usually 2 or 5 years), variable or tracker rates. You can opt for a a capital repayment buy to let mortgage but lenders usually offer interest only mortgages for investment properties. You should always seek independent tax advice.

Although there have been changes to the taxation of buy-to-let properties in recent years, rental income can provide a source of income and property offers a consistent, long-term investment opportunity.

If you are a higher rate tax payer, it may be advantageous to consider purchasing a buy-to-let through a limited company or to use a Special Purpose Vehicle (SPV). Although you should take advice from your tax adviser, we can help you to find the right mortgage or finance product to suit your needs. You should always seek independent tax advice.

A house in multiple occupation (HMO) is a property with five or more occupants, from 1 October 2018 legislation in England and Wales came into effect to govern the way they are managed. Some buy-to-let investors may be able to increase the return on their investment (ROI) by developing their property into an HMO. NM Finance can provide advice to help landlords interested in developing an HMO property, and help investors to finance the refurbishment of their buy-to-let property with exclusive access to lending. You should always seek independent tax advice.

A limited company buy to let mortgage is a mortgage where a residential property is purchased through a limited company or a special purpose vehicle (SPV).

The government changed legislation several years ago which meant that purchasing a BTL property as an individual was more prohibitive from a tax perspective. By purchasing through a limited company, you will still receive mortgage interest relief, amongst other benefits. You should always seek independent tax advice.

This type of mortgage works in a similar way to an individual buy-to-let mortgage however, the only difference is that the security that the lender requires will be more. Usually they will ask for a first charge and a personal guarantee. You should always seek independent tax advice.

The mortgages available are usually interest only, across both fixed and variable rates. There are fewer lenders, but we have good relationships with many specialist lenders, although sometimes rates may be slightly higher, than purchasing as an individual.

Purchasing with a limited company means that you will pay corporation tax, however you will only pay this when you draw funds out of the business and there are also other tax benefits. Limited company shares can be held by multiple individuals and buying using a limited company can be effective and useful legacy planning. You should always seek independent tax advice.