Are you considering investing in your first buy-to-let property? There’s good reason to. The rental sector has more than doubled since 2001 and it’s a trend that looks set to continue. However, you should be aware that buying a property to let out is very different to buying a property to live in.
Becoming a first-time investor is very exciting, but equally nerve-wracking. To help you prepare, we’ve compiled our top ten considerations for prospective investors.
Whilst you may feel overwhelmed by the deluge of information and rules surrounding buy-to-let, a buy-to-let mortgage tends to be similar to a residential mortgage for first-time investors. However, as we mentioned earlier, there are some very important differences. The main ones being the requirement for a higher deposit, fees and interest rates. Like any mortgage, the greater your deposit, the better a mortgage deal you could potentially get. This is important because a lower mortgage rate means lower monthly repayments and a greater margin on your rental income.
Buying a rental property certainly isn’t something you should do on a whim – it’s a significant investment and therefore one that deserves significant research. It’s crucial that you (landlords and particularly new landlords) seek expert advice from a qualified Mortgage & Protection Adviser. Not only can our specialist team at Ingard help secure you a great deal in the short-term, but our extensive experience in structuring property portfolios can also add a great deal of long-term value and to ensure your properties are fully protected, we can also advise you on which type of insurance you will need.
Our friendly team at Ingard is always on-hand to provide free, no-obligation whole-of-market advice. Please call us on 01702 533 400 or click here to arrange a call-back.