If you can raise the deposit, buy-to-let, in our view, can seem like an attractive investment with potentially good returns over the medium to long-term (if compared with current low savings rates for example).
However, you should always ensure that your investment can weather potential interest and tax rate rises in the future as well as any market changes.
You may also consider investing in northern cities and towns such as Leeds which is seeing lots of investment and redevelopment work. Prices are lower and rental yields higher.
There are certain criteria that need to be met in order to take out a buy-to-let mortgage on a house or flat. You must, for instance, be able to afford to take the risk.
It helps if you own your own home, although not essential and a good credit rating is important if you want to qualify for the best deals.
Income requirement has typically been £25,000+ per year — however there are many providers who can help if you earn less.
And lastly, your age is considered. Lenders have upper age limits, typically 75 to 85. This relates to how old you will be when the mortgage ends, not the age at which you take out the mortgage. Certain products have no maximum age level as the lending is predominantly based on the expected rental income rather then personal income and expenditure.
Research the market — do you know the risks as well as the benefits? Your property could be standing empty between tenants, it may need extensive repairs, and plan for rises in interest rates and tax.
Lee and the team would be happy to discuss your buy-to-let mortgage requirements – get in touch today: https://www.onpointmortgages.com/contact/
Director/ Mortgage and Protection Adviser at OnPoint Mortgages
Tel: 07950 672 208 or 0203 633 4940
Lee is a Director/ Mortgage and Protection Adviser at OnPoint Mortgages, which prides itself on delivering specialist mortgage products based on trust and integrity. L&D Mortgages Ltd trading as OnPoint Mortgages is an appointed representative of The On-Line Partnership Limited which is authorised and regulated by the Financial Conduct Authority
Some forms of Buy to Let advice are not regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.