Things to think about when buying to let

A buy to let property can be a wise way to invest your money, but there are numerous buy to let mortgage options available as well as plenty of factors to think about. Although the process of applying can be similar to any home loan, the following tips will help you move into the rental market and compare buy to let mortgages with confidence.

Why buy to let?

It helps to consider the reasons you want to purchase a rental property or apply for a buy to let mortgage. You might think it is the safest way to invest your money for the long term. Or maybe you would like a second income from the rent. Being clear about your reasons for considering a buy to let home will help you make the best decision when it comes to how much you borrow and which mortgage product is best for you.

Location, location, location

Any buy to let mortgage lender will want to know details of the property and area in which you want to purchase. Repayments are in most cases dependent on the rental income from your tenants, so it’s vital you choose somewhere with a stable rental market because you will be responsible for paying back the mortgage when the property is empty.

Doing your research before you make any big moves, such as booking viewings or applying for a mortgage, is essential. If you don’t know the area well, we recommend spending time visiting, looking at various residential areas and talking to estate agents. They will be able to tell you in detail about the town or city as well as important information about the demand for rented accommodation.

Are your finances in order?

When you apply for any mortgage, a bank or lender will have particular criteria they use to assess whether or not you can afford the home loan. For buy to let mortgages, this will usually include:

  • Estimated or potential rental income you can expect to receive
  • Your income and any income of a joint-borrower
  • The value of the property
  • Level of deposit / equity
  • Household expenses and costs such as maintenance charges

You may also have to provide information about your savings, insurance or reserve funds, so that you can prove you are able to cover unexpected damage or maintenance costs.

For a buy to let property, it’s especially important to consider how you will pay your mortgage during periods when the property is vacant. What if your tenant can no longer pay their rent or your property is empty for a long period of time after someone moves out? Mortgage payments must still be paid to your lender, so it’s crucial that you have a plan in place to cover this.

Reviewing your mortgage options

If you are planning to rent out a property to tenants, you must have a buy to let mortgage. But knowing which is the most suitable loan for you can take time and lots of research. At Private Wealth Mortgages, we can help you compare buy to let mortgages and find the options that fit your personal circumstances or goals. This will ensure you have a number of choices and can select the mortgage that is best for you.

To get started, why not put your details into our mortgage calculator? This will give you an idea of how much you could borrow and what the interest rates would be. For a full assessment of what you could afford and the lenders that could give you a buy to let mortgage, call us on 01403 270006.

Make sure you’re prepared

One of the best ways to plan for any mortgage application is to gather the information and financial figures required as soon as possible. Your mortgage broker will be able to tell you what details are required, and these will often include bank statements, credit card bills or balances, as well as the household expenses and outgoings you incur.

At Private Wealth Mortgages, we manage a lot of the mortgage administration process on your behalf, taking care of the paperwork that can sometimes be overwhelming. However, we still rely on our clients to provide us with all the necessary and accurate financial information that can achieve the best result.

Before you compare buy to let mortgages, it’s sensible to review your own personal finances to determine whether investing in a buy to let property is the right move for you. If you’d like to talk to one of the Private Wealth Mortgages advisors, please feel free to give us a call on 01403 270006 and we’ll be happy to help.


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