Ten tips for Buy to Let mortgages
Buy to let mortgage has become quite popular with people in Bristol and some other parts of the UK. But many buyers make their buy to let mortgage in a haste, making insensible business decisions. There are a few important things that you need to keep in mind while going for a buy to let mortgage deal:
Be choosy with the location – Buy a home only in those location where there is demand for rented homes. Don’t buy a house in a very posh locality which tenants may not prefer, due to the inefficiency in meeting up the high demands. Your property’s proximity to schools, shops and transport services can fetch you good deals while renting it out.
Know your budget – It is very important to know where you stand as the start up costs of buying to let can be fairly expensive. You should make sure that you have sufficient capital to get involved in the deal. Make your plans according to your budget.
Study different mortgages – Don’t choose the first mortgage no matter how attractive it may sound as there is always a ‘better deal’ somewhere else. Try and find the most suitable deal for your circumstances suiting your criterion. Mortgage brokers have more information and can guide you to best buy to let mortgages. You can also use a mortgage calculator to help you.
Keep surplus capital – Always keep some surplus capital after buying a house as you might have to cover some unexpected expenditure such as repairs. The property that you are buying might be vacant for some time until you find new tenants so you might need to bear the mortgage repayments.
Know your potential tenants – You should know your potential tenants well in advance when you plan to go in for a buy to let mortgage. Keep the building type, the furnitures etc in mind which your potential tenants may be looking for.
Do a background check – You need to let your house to the right person after securing it. Do a background check on them and verify their financial status from their employer or the bank before renting out your property.
Insure your property – Get insurance cover for your property as tenants will only be responsible for covering their own possessions. An insurance cover will help in case of some unfortunate situation.
Keep the decor simple- Remember you are not the one who will occupy the property but the tenant so don’t decorate the property to your own taste, rather keep it simple.
Seek professional advice – You might have done a thorough study but it is good to seek advice from real estate agents, mortgage brokers and letting agents.
Get insurance – Make sure you have the relevant cover for your property for any unfortunate incident. Tenants themselves will be responsible for covering their own possessions.
All these considerations can make sure your buying to let mortgage very easy deal. Remember it is a long term investment and not just for making a quick buck.
For more information : http://www.severnsidemortgages.co.uk/buy-to-let
Processing your request, Please wait....
