Buy to Let Mortgages
Mortgage providers’ traditionally only offered loans for people buying homes. An increasing number are offering loans for a property you want to “buy to let”, (ie not to live in as your home, but to rent/let out to tenants).
Getting income from the rent is seen as a good investment by some and is becoming more commonplace.
It’s particularly popular for retirement planning because of the growing concerns about the inadequacies of traditional pensions. The old saying “There’s nothing more solid than bricks and mortar” is more relevant than ever.
If you’re interested in renting to students in a university town or to commuters in suburbia, the Council of Mortgage Lenders has two leaflets ‘Buying to Let’ and ‘Thinking of Buying a Residential Property to Let’ You can order them by phone on 020 7440 2255.
Basic rules for buy-to-let
Location location… Buy in the right area. You need to buy in an area where there is demand for rental property without an over supply.
Be careful about buying into big new developments – or near them
Check estate agents for volume of business and prices.
Beware seasonal markets – like universities where students leave during holidays
Is it safe? Is it near to services? Would you be happy for your daughter to walk home at night? Can you buy a newspaper easily?
There are agents that specialise in the buy-to-rent market – it may be worthwhile taking their advice.
Local knowledge eg from agents – or anyone you might know – is invaluable
There is a wealth of information on buying property to let. Just make sure if you’re paying for it that it’s been written by someone with direct experience in the field.
Read more about Rental and Investment Mortgages