Buy To Let Mortgage Advice

When I first started to buy property I asked other people to refer me to a broker. Unfortunately, the broker I was referred to was not a landlord, had no experience of the rental market and I felt ill advised by the advice he gave and the subsequent products I was offered.

As time went by and I grew my portfolio, I started to help other people to finance their deals I realised just how important it was for clients to work with someone who had experience of tenants, maintenance issues, void periods etc. Your investment in property is a long term strategy and how the deal is to be financed is so crucial to the make or break of the deal

You see when you are looking for a buy to let mortgage the type of advice you need is not just what deposit is needed to get the mortgage but for the investment to be viable you need to take into account the arrangement fee, the interest rate, whether you opt for a tracker or a fixed produce and the early repayment penalties.

If, you are new to the buy to let market then you need to obtain as much advice and help as you can get to get started.

Top Buy To Let Mortgage Advice Tips
The Application – Unlike your residential mortgage a Buy to Let lender will predominantly take into account the rental income you will receive as well as your normal income. Some lenders will consider the rent money on its own whilst others will consider both the rental income and your salary.

• Interest Rates –expect Buy to Let mortgage rates to be higher than on a residential mortgage, they always have been around 1% more
• Deposit –budget for a minimum of a 25% deposit. Note the more deposit you put down, the more likely the lower the interest rate
• Arrangement fees – these are generally higher than on a residential mortgage and can even be as much as 3.75% of the loan. This normally can be added to the loan though
• Rental Income – lenders require that the expected rental income to exceed the mortgage payment by between 125% - 150%.
• Consider how you will finance void times – including council tax which you will need to pay if your property is empty for more than 6 months

Plan to finance maintenance issues
Profit –regard your Buy to Let investment as a long-term strategy and really assess the whole of the project from purchase price, rental demand, local industry, amenities, public transport etc

Tax – Although there is no direct tax relief on a Buy to Let mortgage, you can offset interest payments on your mortgage and initial arrangement fees against tax on rental income, along with other expenses such as agents’ fees and maintenance costs etc so seek advice from a good accountant

Attend a property networking event near to you as lots of new and professional landlords meet and you can learn a lot from them.

Buy to Let investment can yield a significant profit if undertaken in the right way at the right time and this is one of the reasons to get the best Buy to Let advice you can.

My best buy to let mortgage advice is simple,use a whole of market mortgage broker with knowledge of the rental property market!