7 Buy To Let Mortgage Investment Tips For Beginners - Mountview FS

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7 Buy To Let Mortgage Investment Tips For
Beginners
The world of buy to let is one that many of us
dream about. Buy a property, rent it out, and
watch the cash roll in. Then buy a couple more
properties, and boom! You can give up your day
job as here you have your own lucrative buy to
let portfolio. Is it really that simple? Being a
landlord is time-consuming and costly, and you
run the risk of being taken off guard by
political law changes as lawmakers want to
squeeze more tax from landlords.
Heres our top seven tips on what to look for in
a Buy To Let mortgage investment 1 - Market
Research
Our first tip for buy to let mortgage is to
research the market. Is now the best time for you
to make a financial investment? Is there a high
market in the private rented or housing
association sectors that outweighs the supply?
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• Before you buy to let mortgage investment, make
  sure you consider all of the variables. In the
  long term, this will save you time, effort, and
  tension. If you are not sure how to buy to let
  mortgages work, you can visit a BTL mortgage
  broker near you.
• 2 - Location
• Consult a local estate agent to find out what is
  and isn't in demand. Discuss what you should
  expect in terms of rent, the neighbourhood, and
  the average property price in the city.
• Do not choose the most affordable or most costly
  locations.
• You should keep an eye out for new and promising
  rental areas.
• It could be worth searching a little further
  afield, as long as you can get to and commute to
  the place in question quickly.
• In order to avoid expensive errors or
  miscalculations, you must be able to respond and
  be responsive.
• Also Read Top 10 Reasons A Buy To Let Mortgage
  Application May Be Rejected
• 3 - Target Your Tenant
• Our next Buy To Let mortgage advice is to choose
  your ideal tenant early on. Renters include
  students, young families, and young working
  professionals.

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Big houses near a university, for example, can
quickly be turned into an HMO (housing with
multiple occupancy). This raises the property's
net rental revenue when more rooms are filled,
resulting in more rental income.. Don't hesitate
to do background checks on prospective tenants.
In this field, references and credit checks are
crucial. You can't rely on someone's word that
they've had a steady job for the last ten years
with no holes in their salary or that they have
a perfect credit score. These checks represent
the type of lifestyle your tenant is used to and
is likely to continue when residing in your
house. Worst case scenario, you'll have to deal
with the hassle of evicting a tenant that can't
afford their rent. It can be both a costly and
time consuming process. 4 - Do Your
Calculations Properly
Begin by creating a budget what can you
realistically afford? Can you afford the deposit
needed for a buy to let mortgage, which is
usually about 25? What kind of rent is the
property going to generate? You want your annual
rent to cover 125 of your mortgage payment to
be minimum.
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You would also account for maintenance expenses
in the budget (typically 10 percent of the gross
rent for maintenance, arrears, void periods
etc). Also Read Local Mortgage Broker in Canary
Wharf (E14) 5 - Risky Business The next tip on
our Buy To Let checklist is to understand the
investment's risks. Will your investment hold up
if the price falls again? What if anything goes
wrong with the house or you can't rent it out?
You could find yourself with an empty property
that you can't rent. 6 - Know Your Additional
Costs
There are several factors that you might not have
considered at first, so understanding the extra
costs is one of our Buy To Let mortgage
tips. Will you manage to repair a furnace if it
broke down or redecorate a room if a pipe burst?
Can you afford it if the tenant defaults on the
rent? You'll also have to think of a number of
insurance options. Also Read 5 Deposit
Mortgage Scheme in the UK for First Time Buyers
and Homeowners
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7 - Tax The last of our buy-to-let tips is to
be aware of your tax obligations. Do you notice
that there is already a 3 stamp duty levy, and
that mortgage interest will no longer be
deducted from rental income? All of these would
need to be investigated and considered before
making a buy to let purchase. Consider meeting
with one of our London and Essex based
independent remortgage advisers. Our mortgage
advisors are familiar with the guidelines used by
lenders and can help you match mortgage offers
to find the best one for you. Mountview FS will
assist you in determining the right remortgage
choices. Call us at 02080950120 for more details
or send us an email at info_at_mountviewfs.co.uk for
more information.
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