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Buy-to-Let mortgages FAQs

How can I improve my credit score?

You can improve your score by proving that you can repay debt and cope with any credit commitment you have, such as loans and credit cards and by paying things like mobile phone bills and utility bills on time. Also, it helps to be on the electoral role.

What is a credit score?

Each individual has a credit score, based on how they have conducted their finances over the preceding six years. Financial services companies use this when considering offering services such as mortgages.

Do I need to pay tax on my rental income?

This will depend on your personal circumstances, but we would advise you to seek advice from a qualified accountant to discuss.

Is there any tax to pay when I sell my property?

Not for your main residence, but if you have investment properties that were bought on a Buy-to-Let basis, these will be subject to Capital Gains Tax.

Is there extra stamp duty to pay if I already own a property?

Yes. In April 2016, the government introduced an extra 3% SDLT payable on any additional properties. There are some exceptions to this, and we would advise you to discuss this with a tax adviser should you need further guidance.

How much deposit do I need for a Buy-to-Let mortgage?

Normally a minimum of 25%.

What is a Buy-to-Let mortgage?

A Buy-to-Let mortgage is where you buy a property specifically as an investment with the intention of renting it out.

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