Before you commit your finances, it’s well worth using a free independent comparison service such as Money Helpline, Woolwich or Nationwide.
Mortgage Options
For a competitive “But-To-Let” you may need to look at the option of a remortgage. Remortgage advice from leading mortgage brokers such as Money supermarket or Britannia can help you secure some great deals without the hassle of setting up another mortgage from scratch. It also takes some of the risk element away from both parties and therefore can tend to be approved more quickly.
The Guide to Buy To Let Mortgages
Thinking about buying a property to rent out?
Some banks will offer a range of Buy to Let mortgages that are specific to the business investment you have in mind, either long term or short. So if you’ve considered purchasing a property to let, or investing for the longer term, then there is some great advice on the high street and its normally free. Most Mortgage Advisers will be happy to discuss the range of mortgages they offer .
Buying a rental property is very different from finding a home. This often gets lost at this point with property finding. Remember, this is a business decision which you should treat as an investment, take care not to get carried away imagining yourself living in the house. Be objective and focus on who is likely to rent the property you are looking to buy. To help you decide on the right type of rental property, here are five handy tips for you to review when you view any property.
Buy To Let Mortgages – FAQ’s
As with any financial commitment, it is essential that you find out all you can before you make any decisions. Most banks will understand if you’re investing in property then you probably have a number of questions.
Here are some pointers you may already have thought of and responses to some of the most common questions asked:
Know you tenant for you “buy to let”. Think carefully about the type of tenant you want to attract e.g. Young professionals, families or sharers. Considering this issue may help you to decide on the type of property you purchase and its location. Remember that Halifax Buy to Let properties have to be let on an Assured Shorthold Tenancy basis.
Consider which area to “buy to let”. Comparison of areas and homework is vital. Do your research and visit lots of different areas. Location is an important consideration and will often determine the type of tenant you will let to. Don’t necessarily buy locally to your home. Think about prosperous towns which might attract a higher demand for rental property.
What’s the location like for your perspective tenant? Try and put yourself in the shoes of your tenant-to-be. Think about transport links, parking, shops, schools and other local facilities – pick the brains of letting agents for information about areas where properties may be easier to rent.
Will it be unprofitable due to constant renovation? If you’re buying a property which needs improvements, then restrictions could be placed on the amount you can borrow and it could also delay how quickly you can let the property out. Can you afford the mortgage payments during the renovation period? Sometimes this can end as a disaster, so don’t dismiss this.
How much rent are you likely to receive? We know what you would like to make, but be realistic. Do your homework – talk to local letting agents, check the local press to find out comparable rental values.
These areas are likely to bring you the best return on your investment: Buy to let in Birmingham, Bournemouth, Cambridge, Essex, Kent, Leeds, London, Northampton, Norwich, Nottingham and Yorkshire.
The reason they are so profitable is mainly due to the Universities and transport links.
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