4 Top Tips for People Looking Into Buy-to let mortgages
For those looking for a sound investment opportunity, buy-to-let mortgages seem to tick all of the boxes. Although the popularity of this type of investment tailed off a little in recent times, it now seems to be back in fashion. Here, the first4commercial experts take a look at some of the best ways to enter into the buy-to-let arena, in today’s fairly buoyant housing marketplace.
Research is King
Before you even think about buying, ensure that you take some time to understand how buy-to-let mortgages actually work. There are quite a few differences between these and standard property loans. Look at the potential returns on a short and long term basis and pick the brains of those who have already entered into this investment field.
Location x 3
Just because that rather large house is dirt cheap doesn’t make it a great investment choice. You should thoroughly research the neighbourhood before taking the next steps. Look at how close the house will be to the shops, good schools and local transport options.
Write down exactly how much you can afford to invest, and remember that the rent will need to cover your outlays. Typically you should be renting out the place for around 125% of the mortgage amount.
There are plenty of lenders who specialise in buy-to-let mortgage deals, so don’t rush into the very first offer you receive. Talk to us at first4commercial – we can guide you through the buy-to-let mortgage maze.
By following these rules and using common sense, there is no reason why you shouldn’t enjoy and profit from this ever popular form of property investment.