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07530 591 219

BUY TO LET MORTGAGES

Most buy to let mortgages are not regulated by the Financial Conduct Authority.

Becoming a private landlord should not be seen as an easy way of making money. It can be riskier and more complicated. It can also be very time consuming and there is no guarantee that house prices will rise. Having said that, buying a second property to let to tenants could reap considerable financial rewards over time.

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YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Different Types Of Mortgage

There are 3 main differences in buy to let mortgages:

Rent Potential

Most lenders will look at whether or not to offer you the mortgage based upon the monthly rent expected against the property value. In some cases your income is not ever considered.

Interest Rate

Buy to let mortgages typically have slightly higher interest rates.

Larger Deposit

Typically a minimum 25% of the property’s value is required as a deposit. Some lenders will allow a 20% deposit but these usually come with a higher interest rate.

When you manage a property there are many costs involved in addition to the monthly mortgage repayments. These additional costs include:

  • Property upkeep – maintenance costs for the property.
  • Letting agent’s fees – letting agents charges can vary substantially from agent to agent so it is worth shopping around to get the right deal. This will also depend on whether you want to manage the property yourselves or have the agent do it for you.
  • Ground rent/service charges – can be applicable on some properties so it’s important to ask the question before confirming your intention to purchase.
  • Legal insurance – to cover costs from evicting tenants in the event of non-payment.
  • Insurance – building insurance and contents insurance for the items provided as part of the rental agreement. Buildings insurance will be a condition of any mortgage offer from the lender.
  • Furnishings – the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your home insurance.
  • Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with any regulations such as safety tests.
  • Decorating costs – get estimates and quotes for any work the property may require , from a lick of paint to freshen the place up or bathrooms and kitchen should they need replacing.
If you are looking to make a profit from a buy to let property over a long period of time then look towards the property as being an investment and not somewhere for you and your family to live. Do some research of the rental market in that area and speak to letting agents to see how desirable the type of property is to tenants.

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We’re more than happy to come out and see you, at a time that suits. Evenings & weekends too, if needed!

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07530 591 219

Based in Thornton Cleveleys, Lancashire, and helping clients across Lancashire and the UK.

CONTACT

  • Mortgages by Louise & Associates, 17 Victoria Road East, Thornton Cleveleys, FY5 5HT
  • 07530 591 219

Mortgages by Louise & Associates provides expert mortgage, protection and insurance advice. Mortgages by Louise & Associates is a trading name of Just Mortgages Direct Limited and Mortgages by Louise & Associates is the name under which we carry out these services.

Mortgages by Louise & Associates is not a business in its own right, it is part of Just Mortgages Direct Limited, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited. Just Mortgages Direct Limited was set up in 1989 and has been part of The Openwork Partnership since 2016.

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The Openwork Partnership is one of the UK’s largest Financial Advice networks, with over 4,500 advisers and in excess of 700 appointed representatives based throughout the UK.

Our advisers at Mortgages by Louise & Associates will get to know your individual circumstances, establish what your goals are and what the right mortgage and protection arrangements are for you.

Disclaimer:

The information on this website is for use of residents of the United Kingdom only. No representations are made as to whether the information is applicable in any other country which may have access to it.

Mortgages by Louise & Associates, 17 Victoria Road East, Thornton Cleveleys, FY5 5HT

Mortgages by Louise & Associates is a trading name of Just Mortgages Direct Ltd, which is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority. Just Mortgages Direct Ltd registered office: Colwyn House, Sheepen Place, Colchester, Essex, CO3 3LD Registered in England & Wales No 2412345

The Information on this website is subject to the regulatory regime and is therefore targeted at consumers in the UK.

Approved by The Openwork Partnership on 30/10/2023.