Landlords of residential property in the UK are rethinking their borrowing strategy, following the Government’s announcement that the amount of tax relief available for finance costs, including mortgage interest, is being reduced from 6 April 2017.

If you are a landlord and let residential property, you currently have the benefit of offsetting all of your finance costs against the rental income when calculating tax liability.  For higher earning individuals, you receive the maximum tax saving for your borrowings and arrangement fees.  Under the new restrictions, the Government will be reducing the tax relief to the value of the basic rate of income tax which is currently 20%, phased over a 4 year period. This follows a series of measures aimed at the residential Landlord including the introduction of additional legislation, in the form most recently of the Right to Rent Scheme and minimum Energy Performance Certificate compliance in 2018. 

At Fisher German we are working with clients to restructure their lending in preparation for the changes by reviewing existing borrowing secured against residential properties and restructuring this to other portfolio assets. 

With interest rates at their lowest, competitive rates are available, we have the required experience, technical and local knowledge to provide you with the professional advice you need. Fisher German are appointed agents to a range of lenders including the Agricultural Mortgage Corporation (AMC) and can assist with the preparation of cash flows, lending applications and associated valuations.

For further information contact:

Louise Duffin on 07810 378191 or email here

Holly Parry on 07501 720416 or email here