Although buy to let mortgages are generally a little more expensive than those seen for conventional mortgages, they have become far more competitive in recent years as the buy to let boom has taken off. As such, spending money on a buy to let mortgage can bring almost instant returns, with money being made from tenants as soon as they move in, rather than having to use all of their rent to pay off the mortgage every month.
Tax relief is not something which is automatically attached to buy to let homes, however there are ways of establishing some tax breaks.
For example, interest payments on the buy to let mortgage can be offset against tax on rental income, together with other expenses such as maintenance costs and agents' fees. This means that some gains can be made and although there are no direct tax perks to be gained, the tax attracted on a property is not in any way inhibiting to those looking to purchase a second property.
