Landlords and property investors have recently been the victims of some adverse changes to the tax treatment of rental income from buy to let property. In response, many lenders have been thinking creatively about how to help these customers maximise the returns they can generate from their portfolio.  You can expect to see further innovation in this market.

We work with Castle Trust, which specialises in helping buy to let landlords to increase their borrowing on existing assets without impacting adversely on cashflow.  By offering buy to let mortgages which allow interest to be partially or wholly deferred, Castle Trust can release capital which can be used, for example, to refurbish existing assets, subsidise a cashflow deficit elsewhere in the portfolio or to acquire further property.

Castle Trust typically lends on a fixed rate basis and, as there are no mandatory monthly payments, it does not apply a rental income stress test to its lending. This is particularly attractive for low yielding assets.

Loans are available on a first or second charge basis, up to a maximum 80% loan to value and you can choose a term from 1 year to 5 years. There is no maximum age and the maximum loan size is £10 million.

As every case is individually underwritten, Castle Trust can also consider more complex circumstances, such as portfolios, houses of multiple occupation, untenanted properties and holiday lets as well as loans to expats, foreign nationals and non-domiciles.

If you are interested in this product, please do not hesitate to get in touch.