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If you have
been thinking of investing in property and becoming a landlord then
rest assured, you're not alone. Buy2Let is getting increasingly
popular, especially when you get a fixed rate or capped a rate mortgage
these days. Low interest rates and stable rental income looks attractive
and safer - compared with other investments.
The
Basic Questions
Can I get
a mortgage?
Yes. We have
a number of special advisors, who will find you the most competitive
mortgage, leaving you free to make your own arrangements for renting
out the property without going through an agent.
How much
can I borrow?
The amount can
ranges from £100,000 to £1m per property, and lenders will typically
advance a maximum of 85% of the property price. Some lenders say
the rental income must be at least 125% of the mortgage payment.
Others will lend a multiple of your salary, say three times, plus
half the rental income.
Interest
rate?
Most borrowers
for Buy-to-Let prefer Fixed or Capped rate mortgage so that can
plan their income and outgoing's better. At one time lenders charged
commercial rates on loans taken out to buy property to let. Since
more lenders have entered the market, who are prepared to lend for
Buy to Let properties. So the interest rates only slightly higher
than ordinary home loans. With the present low interest rates more
and more people are attracted to enter the Buy to Let market.
More than
one property?
Some lenders
will only lend on one property; others limit you to 2, 5 or 10,
and some may have ar limit on the overall amount you can borrow.
Tax Relief
?
Yes, you can
offset interest payments on your mortgage against tax on rental
income, along with other expenses such as agents' fees and maintenance
costs.
Still interested?
If so read our 3 step plan on getting your best buy to let deal.
Step One
- Location, Location, Location
- Find the
most suitable property is in an area suited to letting.
- You can consult
the Association of Residential Letting Agents (ARLA) who will
provide help and advice on regulations and rent levels. Contact
ARLA on 01923 896 555.
Step Two
- Financial advice
- Check how
much your can borrow (normally around 80% of property value)
- You will
need a substantial deposit
- As a guide
your rental income should cover at least 125% of your monthly
mortgage payment.
Step Three
- Do your Sums
- Compare your
monthly mortgage payment and look around at the average rental
rates in your area. This will give an indication of whether the
buy to let option is a distinct possibility.
To get the best advice just simply fill in our application form
and wait for one of our many advisors to contact you usually within
the next few hours.
updated:11/11/02
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