Buy to Let Mortgages
Buy to let mortgages are now available from numerous banks and their subsidiaries. Using a mortgage broker to find you the best buy to let deal will save time and money.
Investing in property can be an excellent investment, but it is important that you do your research.
Buying residential property to rent out privately has been very popular in recent years. This is because
- Property can be a good longer-term investment
- There is plenty of demand for rental accommodation
- Mortgage lenders are offering competitive deals for landlords on very competitive rates.
BUY TO LET
- Borrow between 85 - 90 per cent loan to value, so your deposit will determine your price range
- Get advice from a local estate agent about types of property most likely to be let in the area and the level of rents paid
- Approach us for the mortgage advice.
- Put an offer in on the property you want. Once it has been accepted, instruct valuation.
- If the property is old you should commission a Homebuyers Report or full structural survey
- Instruct a solicitor. We can recommend a conveyancer.
- Lender receives valuation report and if acceptable mortgage is offered.
- Solicitor carries out local authority search and confirms legality of title
- Pay the deposit, sign and return the contract and the solicitors will exchange contracts. You are now legally committed to the sale.
- You must get Buildings Insurance immediately in order to complete the mortgage.
- Get any quotes for any renovation work you intend to do.
- On completion, the property is yours to let
- Advertise for tenants as soon as possible.
- Arrange to meet prospective tenants.
- It may be easier to use a letting agent.
CHOOSING A PROPERTY
When investing in a property to let, it is important not to allow your heart to rule your head.
When you buy-to-let, it is vital to do your homework thoroughly before you purchase a property. Remember, you require a property that is easily rentable and is in a high demand area.
Expert advice
When looking around for a suitable property to buy, it makes sense to get advice from local specialist letting agents. They know exactly what types of property are in demand in their area, and the likely rental returns from those properties.
They'll also take care of finding the tenants, deciding on the size of and collecting the tenants deposit, and the ongoing management of the property once you have purchased it. Many lenders insist that you use a memeber of the Association of Residential Letting Agents (ARLA) to manage the property.
Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
The overall cost for comparison is 7.1% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. There may be a fee for the mortgage advice. The precise amount will depend on your circumstances, but we estimate it will be 1.5% of the loan amount with a minimum fee of £500 added on to the loan.
Mayfair Consulting Limited is an Appointed Representative of The Mortgage Times Group Limited, 279 Tottenham Court Road, London , W1T 7RJ , which is authorised and regulated by the Financial Services Authority no. 303007.
