Things to consider regarding buy to let
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Will I always have a tenant?
Probably not. According to the August 2020 report(1) from the Associacion of Residential Letting Agents (ARLA) the average tenant stayed in a property for 21 months with an average void period between tenants of 3 weeks. That may seem perfectly acceptable, but bare in mind this is an average and the void period for you could be considerably longer. So you should consider how you will pay the mortgage payments during any void period before buying the property. What if interest rates increase? If you aren't on a fixed rate, or when your fixed rate ends, there is no guarantee what interest rate you will be paying or what your monthly payment will be. So this could eat in to your profit or even leave you with a shortfall to cover yourself. Should I use a letting agent? The benefits of using an a letting agent are that you have someone to turn to in moments of difficulty, eg dealing with tennancy agreements, a middleman to deal with tenant queries, someone to market the property and find you a tenant, etc. However you will of course pay for it and this cost should be taken into account when considering your options. Where and what should I buy? You will want to consider the area and the type of property you are purchasing. Is there a market for that type of property in that area? If you are looking at family homes, are their local schools within easy reach? Is it within a commutable distance of the main working areas nearby? You will need to do your homework and ensure you understand the area you are buying and the likely market for the type of property you are considering. (1)https://www.arla.co.uk/news/august-2020/demand-from-tenants-highest-ever-on-record/ |
Your property may be repossessed if you do not keep up repayments on your mortgage.
The FCA does not regulate some forms of buy to let mortgages.
For mortgages we usually charge a fee of £395 plus commission from the lender.
The FCA does not regulate some forms of buy to let mortgages.
For mortgages we usually charge a fee of £395 plus commission from the lender.