Buy To Let

Invest for your future. Buy to let (BTL) has become hugely popular in recent years. We believe there are many reasons why; some of which include uncertainty of pension provisions, more potential tenants due to the increase in house prices (many people simply cant afford to buy) and the increase in demand for BTL mortgages has pushed the lenders into a fierce battle competing with each other for your business. In turn the rates now available for BTL and the terms attached to these mortgages are very attractive. In fact the gap between BTL and a normal mortgage rate is narrowing all the time.

Lastly the huge of amount of television programs now on regarding property and property development has made entering this market very popular and why not? If you take good advice and do your research it can be a great way of providing for your future. For advice, guidance and or to get some figures together give us a call, we’d be delighted to hear from you.

There is no guarantee that it will be possible to arrange continous letting of the property, nor that the rental income will be sufficient to meet the costs of the mortgage. Not all buy to let mortgages are regulated by the Financial Services Authority.

We do not charge a fee for mortgage advice. However, we do offer a purely fee based option of up to 1.5% of the mortgage amount.

10 Tips for Buy To Let

1. Research is an absolute must, how much is the rent in your area is there many people looking for BTL, is there pages on pages of rental properties in your local paper.
2. If you can make a friend already in the business they will be worth their weight in gold. Most people will be happy to pass on what they have learned.
3. Keep your refurbishment costs sensible but ask yourself; would I live in it?
4. Don’t assume you will let your property right away; you should have a back up fund for periods not having a tenant.
5. There are advantages and disadvantages to using a property letting company, speak to 2 or 3 in your area. Find out what they offer for the money they charge.
6. If you are having a property valued remember and ask for a rental value from the surveyor as well.
7. You will need to register with the Inland Revenue as rent from your property is classed as income; things like rental management, upkeep and the interest on your mortgage can all be offset against the income. You should speak to the Inland Revenue for a list of these things or speak to an accountant.
8. Remember to include other associated costs such as buildings insurance and management fees into your workings.
9. Avoid properties over or adjacent to commercial property such as pubs shops and restaurants. Some lenders will not lend on such properties and resale may be more difficult in the future.
10. Many people who own BTL properties wont allow pets, you may well get an edge on some competition if you are prepared to allow this. Common sense is key, a woman with one cat may be ok where as a woman with 4 dogs may not