Buy to Let: handy tips for first time landlords
There are signs that the UK property market could be set for another buy to let boom as the Council of Mortgage Lenders has released data that shows that £16.4 billion was lent to buy to let investors in 2012, 19% higher than in 2011 and the highest figure recorded for this sort of mortgage borrowing since 2008. Buying property in order to let it out to generate a regular income – or in the hope of long-term capital growth through house price inflation – has been a popular option since the late 1990s. The demand from tenants for rental property continues to grow in many areas of the country, fuelled by long term trends such as population growth, more single-person households and the difficulty first time buyers have in saving for a mortgage deposit.
If you’re planning to invest in a property to rent out for income and capital growth, then it is likely you will need a buy to let (BTL) mortgage, as well as tips on what to look out for as you buy your first BTL property or develop your portfolio.
Whatever your level of knowledge about the subject, it pays to ask the advice of a specialist buy to let mortgage adviser who has access to the whole of the market, not just one lender’s range of products. At Marchwood IFA we are experienced in arranging the right buy to let mortgage for our clients, but we can also give them some useful advice about what to look out for when they become buy to let landlords.
For instance, here are a few areas for your consideration.
- Lending criteria – often quite different from residential mortgages
- Purchase, mortgage and running costs, including letting agent fees
- Rental income, sale proceeds and your tax obligations
- Tenancy agreements Initial deposits and deposit protection schemes
- Landlord insurance
- Repair and maintenance obligations
- Gas and electrical safety
- Fire safety of furnishings
- Ending a tenancy
Please contact us at email@example.com for a free Buy To Let investors guide. We’re here to help you.
Your property may be repossessed if you do not keep up repayments on your mortgage.