6 points to consider about “Buy to Let” mortgage

The following article highlights what you should know about buy-to-let mortgage.

07:57 25 December 2013

There are moments when you have to think about your financial future. Buying property is a one way of safeguarding it. The real estate market is a harbinger of trends in the market. One trend that is taking the market by storm is the “Buy to Let” craze where people buy houses and let them out.

Buy to let property is a growing trend that you might have to get on with- sooner or later. Many people are taking it up mainly for the returns involved given the low amount of the risk one is running in taking a buy to let. However, when you want to get into this you should not be blind to the obstacles that you might bump into. Investments are a risk and you should be able to skirt the line of risk and rewards if it is going to be worth it.

• Evaluate your mortgage options

There is a variety of mortgages offered to people waiting to start on buy to let.

• Get the right deposit

Look at the right deposit. People pay anywhere between 25% and 40% for the best deals out there.

• Evaluate whether the rent will cover the repayments

If you are going to make this work, you should make sure that your rental income per month makes for at least 120% to 125% of your interest payments per month.

• Scout for deals

Buy to let mortgages are expensive and it is a good idea to keep an eye out for the latest deals.

• Keep an eye on the returns that you can get

Every venture has to have projection or goals that have to be met. Ensure you have a yardstick of measuring if you are meeting these goals.

• Be vigilant about the cost

Do not let the costs of the venture spiral out of control. It is very easy for you to get lost in expenses between your mortgage and other miscellaneous expenses. 

• Consultation is the best

There are some situations in which you will require to consult a reputable mortgage professional. If you are contemplating about taking a huge step in regard to your mortgage, ask around for advice.