Buy to let properties can provide a good income if done properly. It is important to research before making the investment to first of all make sure you understand what you are getting into and so you make a good investment, providing you with a good return on your investment.
Top tips for buy to let mortgage investors.
Research the buy to let market
Making a calculated investment can save you thousands of pounds and maximise your return. Ensure you understand the risks as well as the benefits to the buy to let market. Many investors in the past few years invested to benefit from the rising value of homes. We all know this value has now disappeared. If you are going to invest make sure the investment is profitable.
Choosing the area
You should also research different area, higher rental incomes will be possible if you are going to rent a family home that is near a school or if it would suit students is it near a university or college? Taking this into consideration will help you rent your property quickly and at a good rate.
Calculations
The mortgage market has changed with many lenders asking on average for a 25% deposit. Can you afford this? Sit down and work out if you can fund the investments, check property prices to assess how much you will need to borrow and if rental income was to fall can you still make a profit?
Mortgage lenders are likely to ask for rental incomes to cover 125% of the mortgage repayments. You can find many mortgage calculators on the internet that will assist you with your calculations for your buy to let mortgage.
Choosing a lender
Don’t go to your bank were you hold you current account. Shop around, first of all lenders offer vary greatly and you can get whole of market expert advice from specialist brokers who will help you find the best deal for you. You can get information from brokers for free so search about for brokers too to find a no fee mortgage broker. The mortgage broker should save you interest when compared to your own bank and therefore increase your profit.
