Becoming a landlord is an exciting opportunity, but the risks need to be carefully considered. The key to a successful buy to let investment is to plan your finances and choose the right property. Anyone can become a landlord but while buy-to-let mortgages are similar to residential mortgages, there are some very important differences that we can help you with.
Whether you're starting or expanding your property portfolio, you will need to arrange a Buy to Let mortgage. We can arrange a Buy to Let mortgage up to 85% loan to value. Buy to Let mortgage can be assessed from both rental income and you income.
Many lender look for a property's rental income, the rent must be at least 120% of the mortgage payment, which means the income you generate from the property has to cover the mortgage repayments. It's wise to make sure the rent also covers insurance charges and the general repair and upkeep of the property now and in the future taking into account the possibility of future interest rate rises.
Buy to Let mortgages can be up to £1m (subject to product availability) on an individual property, over a term of 5 to 25 years. You can borrow on a Repayment (capital repayment basis) or on an interest-only.
You will need to make provisions for how you would make your monthly Buy to Let mortgage repayments in the event of your Buy to Let property being empty, your tenants failing to pay or if interest rates rise. You should remember is that a mortgage used to finance a buy-to-let property is not regulated by the Financial Conduct Authority.
Do your research look at websites like Zoopla and Rightmove to see how much properties are being rented for in the area. You will need to consider how much rent you will receive. Who are your target tenants family or young professionals? Do you want somewhere that’s ready to let or somewhere that’s needs renovating? Speak to local agents and ask what types of properties are currently in demand.
It is important that you seek independent financial advice we could help you find the ideal Buy to Let mortgage to find the best rates from the whole market. So all you have to do is find the perfect tenants. We offer a range of fixed and tracker products so you can pick the one that’s right for you.
Why not find out what is the best mortgage options for you so contact us today.
Not all buy-to-let mortgages, or loans and debt services are regulated by the Financial Conduct AuthorityThe value of investments and the income from them may go down. You may not get back the original amount invested.Your home may be repossessed if you do not keep up repayments on your mortgage.The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK
