It’s been an exciting few weeks for the buy to let mortgage market with Paragon announcing interim results and a significant jump in profits matched by solid arrears figures. The stock which had been trading at 160-175 in the preceding weeks has adjusted to over 200 for most of the last fortnight. At the same time they have been continuing to provide not just useful and unique products such as HMO Buy to Let Mortgages and limited company buy to let products but has continued to publish reports, analysis and advice for buy to let landlords. In their most recent piece they warn that many buy to let mortgage holders are not even claiming the mortgage interest as an expense, let alone the huge range of other allowable deductions.
Paragon – The Buy to Let Mortgage Provider Shines
By combining a unique specialist proposition with a back book of existing business that performs startlingly well Paragon have driven their H1 profits to £39.5 Million from £29.3 Million the same time last year. Whilst competition in the sector has been nothing short of brutal many of the new entrants are fighting over the same segment – prime buy to let mortgages. Houses in multiple occupation, limited companies and more complex property types and semi-commercial units are largely ignored by the mainstream.
Paragon not only caters for this segment but is a bona fide expert in specialist buy to let mortgages. By working with a range of experienced and dedicated brokers they are able to deliver the right mortgages on the right properties to the right buy to let mortgage applicants. This experience combined with a brand that to many landlords is synonymous with the phrase ‘buy to let mortgage’ and the boom in portfolio building during the good years of the property industry has meant a swift return to prominence in the sector.
Tax Advice to Landlords
The main thing landlords should do is consult a tax adviser as surely Paragon’s report which included stats like 10% of landlords not claiming back buy to let mortgage payments as an expense and over half paying for advertising costs without deducting any costs proves that many landlords are overpaying tax. Whilst rental yields are strong across the UK at the moment they are hardly at such bumper levels that landlords can disregard the many opportunities to save money and improve their tax efficiency.
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