Buy to Let Mortgage UK
Entering the buy to let mortgage in the UK can be an extremely good way of investing spare money to generate revenue. It can also be an effective way of leveraging a good credit rating to increase revenue further. If you decide to enter into the market the biggest single factor that will determine the return you make on your investment is the property itself. It sounds obvious but it is essential that you choose the right property.
Choose the right area
You need to have clear view of what you want to achieve and an in-depth knowledge of the property market in the area where you are considering investing. Is the area suitable for families, young professionals or any other group that you are targeting as tenants? A knowledge of local amenities and planning decisions that may affect your property from a tenant and landlords perspective is also essential when making a decision to buy to let.
There is also a choice to be made between a new property or an older one that may be in need of some refurbishment and either choice will have an impact on the return you expect from your investment.
It’s one thing investing in property but another to make money out of it. You should ensure that after you pay your monthly mortgage that the yield will be significant enough to justify all the risk you take. Deposits for buy-to-let may require larger deposits than say if you were buying for yourself to live in, reflecting the risk of the mortgage company.
Researching mortgage deals
There are 1000s of mortgage lenders competing for your business so take your time and check out all the deals. A mortgage broker is a good step to take, they will usually have a number of lenders they can advise on. Do your homework it will pay dividends in more ways than one later on.
Remember you’re buying a property to rent out but just because you have unlimited funds it doesn’t mean it’s best to buy a 5 bedroom house and think it will automatically be rented. Maybe smaller properties will be easier to rent to fewer people like a couple or small family.