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Leeds BS launches mortgages to help landlords clawback more tax relief

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  • 12/06/2018
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Leeds BS launches mortgages to help landlords clawback more tax relief
Leeds Building Society is offering buy-to-let mortgages with inflated fees to compensate for lower rates, which the lender claims will help landlords reap the benefits of tax relief before it is phased out.

 

The mutual has added two-year fixed-rate mortgages with a £2,499 upfront fee, with rates of 1.44% at 60% loan to value (LTV) and 1.69% at 70% LTV.

The lender said the products enable landlords to front load funding costs and maximise mortgage interest tax relief, which is being gradually reduced to the basic rate between now and 2020.

The deals minimise interest payable next year when tax relief becomes less favourable.

Jaedon Green, Leeds Building Society’s director of product and distribution, said: “The underlying economics of buy to let are changing as the government’s tax changes start to bite.

“Fixed rate products continue to look attractive, offering certainty 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.”

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