Are you considering a buy-to-let as a financial investment?
Buy-to-let and other property investment has grown tremendously over the last couple of years, and the range of buy-to-let mortgages has grown significantly.
Who choose buy-to-let as an investment?
Buy-to-let can be a profitable investment if you calculate everything correctly and keep your mortgage repayments as low as possible. There are several reasons why buy-to-lets are an appealing investment:
Low interest rates on savings accounts and bonds mean property is an attractive investment
Record low interest rates on buy-to-let mortgages equals more potential profit on the already attractive investment
Buy-to-lets present potential for large increase in value with renovations or redecoration
There is a high demand for rental properties across the country with people struggling to raise the deposit necessary to purchase their own house.
Is buy-to-let right for me?
Buy-to-let is a long-term investment, and, as with all investments, they carry some risk.
The property value may fall as well as rise, along with the interest rate, so you have to be committed as well as doing all your sums to ensure your investment has the best possible chance at success
What should I consider when applying for a buy-to-let?
When applying for a buy-to-let mortgage, there are certain things you should consider that are different to a normal mortgage:
Larger deposit - buy-to-let mortgages require a higher deposit than normal, typically between 20-40%
Extra costs - you must budget for extra costs such as higher mortgage arrangement fees and the extra 3% of stamp duty for additional properties.
High enough yield - The lender you apply to will need to ensure that your rental income from the property you purchase is enough to cover your mortgage repayments. Usually they will expect the rent to be at least 125% of the repayment
To discuss your buy-to-let mortgage options, speak to one of our expert advisers today,