Buy-to-let Mortgages
Buy-to-let Mortgages seem to have taken a downturn due to the rise in property value of the last 10 years. With property on average cost double or 50+ what it was in 1997 the profits of buying to let have dropped and less investers are taking up this option.
With the recent policy changes at most lenders Buy-to-let Mortgages which were once given to as much as 90% of the property value is now a lot less and are seen as a less viable option.
The golden rule for buy-to-let mortgages is to buy such that you can charge at least 20% more on rent than your repayments are. The most important thing to bear in mind is buying in an area where you know is renting well and go as far as visiting a few properties for rent and checking out what they offer in terms of rooms, furnishings, local area etc Dont pay above what you would pay as a first property, just because someone will be paying your mortgage!
While average rent rose by 13% in England and Wales, the downturn in property prices has seen a check on new buy-to-letters. The Government policy on mortgages has seen the mortgage rate held for the past few months in an effort to keeping the housing market from falling…
There are still significant pockets of bargain Buy-to-let propeties available which are sure fire capital gains winners! Only your knowledge of your local area and property in general can get your money working.