If you have
been thinking of investing in property as a business,
you're not alone. Buy to Let is getting increasingly
popular, especially when you get a fixed rate funding
these days. Low interest rates and stable rental is
a secure and safer buisness compared with many others.
With careful
planning, choosing right kind of properties and securing
right funding are the key factors in this equation.
PLUS this business has a longer term benefit too,
as the value of your investment/property will keep
increasing.
Here
are few facts to support this idea:
How
much can you 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. To balance the books by the
end of the year, the rental income from the proeprty
must be at least 125% of the mortgage payment.
Interest
Rates?
Most borrowers
for Buy-to-Let prefer Fixed mortgage so that can plan
their income and outgoings better. Buy-to-Let are
treated as commercial lending and are subject to higher
rates . Since more lenders have entered the market,
which are prepared to lend for Buy-to-Let properties.
So the interest rates still very completive, may 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 a limit
on the overall amount you can borrow.
Location
Before you
can find the answer for this question, you must think,
of what kind tenants you would like to have in your
property? People looking to rent various so much:
If you are looking for an income for your retirement,
then you need totally different kind of tenants, such
as a large company, an embassy or an expat family,
who will give you sure tenancy for at least for 12
months. In the case of company or an embassy tenants,
this agreement can be long term with annual rent rise.
Financial
advice
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.
