Buy To Let Mortgages UK
Buy To Let Mortgages UK Guide For Budding Landlords
When it comes to buy to let mortgages UK landlords can do several things to make sure they get the best deal and the best return on their investment. To start with, it's worth comparing the deals on buy to let mortgages UK lenders offer. This means looking into interest rates, and remembering to look at the overall cost of a BTL mortgage to get a true picture of how much you will have to invest over time.
Most professional BTL landlords compare not only interest rates, but fees and repayment methods on the buy to let mortgages UK lenders offer. There can be a world of difference between low rate, high fee buy to let deals and low fee, higher rate buy to let mortgage deals. The deposit that lenders require varies too. The deposits landlords are required to make can be anywhere from 15 per cent to 35 per cent, depending on the landlord's circumstances and the lender's criteria.
With buy to let mortgages UK property investors need to do a lot of initial research if they are to make a success of their BTL investment. This includes the research that is needed to find the right investment property. With buy to let mortgages, letting agents are an invaluable source of information and many professional landlords find it best to seek their advice before investing in a new area. Finding out about the type of property that is popular in a particular area and the prevailing rental values will help you to determine whether a particular property is a bargain or a lemon.
Finding A BTL Tenant
Linked to this, a key issue landlords need to consider is how to find the right tenant. Again, letting agents will be able to help with this aspect of property management. They will be able to reduce the amount of time the property is empty and find the right tenants.
Many professionals suggest that once they have a buy to let mortgage, landlords should spend only what is needed to make the property liveable. There's no point going overboard on decoration - keep it neutral and it will appeal to a wider range of tenants and be easier to let. It needs to be clean. Remember, you are not going to live in it, so there is no need to personalise the property.
Another issue with buy to let mortgages UK property investors will be interested in is the return on investment. According to some landlords, even an eight per cent return is adequate, though others prefer to go for at least 12 per cent. And landlords who had property at the start of 2006 would have seen an average return on investment of more than 16 per cent, according to research from Paragon Mortgages. According to Paragons buy to let index average yields remain stable at 6.4% for the second continuous month in June 2008 providing a "vital source of stability" for an uncertain housing market. With that kind of return on buy to let mortgages UK landlords are bound to be back for more in the following months.
