You can make a fantastic profit and income, purchasing a buy-to-let property.
My top tips for success in your buy-to-let investment are:
Founder & Managing Director
With fantastic returns it’s hard to think of a better option to do with your money.
Provides a good monthly income, capital growth, pension, secondary income.
Property prices do go up and down but generally they always appreciate in the long run.
Buy-to-let mortgages typically require a minimum deposit of 20-25%. The larger the deposit you put down, the greater the range of mortgage products you can choose from and usually the lower the interest rate.
Lenders use a rental affordability calculation to determine how much you can borrow. When assessing your affordability, buy-to-let mortgage lenders will base your loan on the expected rental income of your property.
For basic rate taxpayers, lenders require that the monthly rental income be at least equal to 125% of the monthly mortgage payments on an interest-only basis. For a higher rate taxpayer, lenders will often ask that the monthly rental income is at least equal to 145%.
Ask yourself these questions:
What is best for you and what is best for the type of tenant you want?
If you are aiming to rent to a single person, a one-bedroom flat with no garden may be better than a three-bedroom house. Select a property that can easily be resold if you no longer want the property.
An older property may need work carried out before you can let it out. Make sure you take these things into consideration when 'crunching the numbers' on your investment and expected returns.
The needs of a tenant who is a student are different to corporate tenants or families. Do you have an ideal tenant in mind, or are you flexible in this regard?
There are three types of survey (RICS):
a basic report suitable for all modern properties
an extensive report suitable for all modern properties
a comprehensive report that is suitable for all types of modern, older, listed, altered and unusual property and those in need of structural repair
You’ll also need a solicitor (conveyancer) to complete the legal side of the purchase. Easy Mortgages can also arrange this for you with our partner Movin Legal.
Once you have purchased a buy to let property, you will need to prepare for the letting and think about how to maximise your yield.
Consider things such as whether you will manage the property yourself or engage an agent and whether you will let it furnished or unfurnished.
You will also need to prepare to let the property and comply with certain regulations.
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Once you have found the right property, you will need to arrange the finance to purchase it.
Easy Mortgages will advise you on the buy to let mortgage products on the market – you will need the right deal at the right rate.
Working with a mortgage broker can be beneficial when buying a buy to let property because maximising returns involved securing the best finance possible.
Working with Easy Mortgages offers:
Access to a wide range of lenders – see and compare offers from various lenders at once
Expert advice – with years of experience, the advice a mortgage broker can provide you when buying a buy-to-let property is invaluable
Negotiation power – we can negotiate directly with lenders on your behalf and leverage our relationships and our knowledge of what lenders require to offer the best deal
Time-Saving – paperwork, back and forth, understanding the varying lending criteria of your bank can be a long and convoluted process without help
In a 100% obligation free consultation, we will provide you with free personalised advise, taking into account your current circumstances and our years of experience helping first home buyers across the United Kingdom.
Contact us anytime.
Easy Mortgages Limited is an appointed representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.
Registered address; 41 Agincourt Avenue, Gosport, Hampshire, PO13 8NU. Registered in England & Wales under number 13862954
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman. Our advice is covered under the Financial Ombudsman Service.
