Deducting repair costs from your taxable income on your rental property
July 26 2021
July 26 2021
If you are a landlord with one or more privately rented properties, you are probably well versed in what you can and can’t claim as allowable expenses against your rental incomes.
With the taxation rules tightening around mortgage or loan interest for financing properties, it is important to remember that interest on loans for property repairs is still an allowable expense.
Our landlord loans have a fixed interest rate, Representative Example (4% fixed interest rate, Representative 4.2% APR) whether you borrow £5,000 over 5 years or £25,000 over 10 years or more. Our deferred interest loan options give you the flexibility to defer repayments for 6 months up to 2 years. This gives you space to complete the repair work and tenant the property before your monthly capital repayments commence.
With no early repayment charges, you can also settle the loan in full at any time with no penalty. Many of our customers see this as a great opportunity to borrow for initial renovation works on un-mortgageable properties, before re-financing once the works are complete. In essence, this makes our scheme an attractive alternative to bridging finance!
If you are looking at undertaking repairs to your existing properties or renovating an empty property, contact us for an informal chat about our loan scheme for landlords.