UK BUY TO LET MORTGAGE QUOTE

Over a million families live in properties rented from the private sector in property worth over £120,000,000,000 which contributes over £30,000,000,000 to the economy each year. If you’re a private investor in the rented sector looking for a low cost buy to let mortgage quote our specialist lenders can offer highly competitive interest rates which will give the reasonable certainty of sustained capital growth over the coming years.

In the past, borrowing money to invest in property with a view to producing income was viewed as a commercial activity with the incumbent risk of the business sector and as a result attracted higher interest rates than borrowing in the private sector for owner occupiers. This meant that a buy to let mortgage quote was more expensive than a similar private arrangement. In addition the actual income produced by the proposed rented property was not taken into account when assessing the amount that the borrower was able to repay by way of monthly instalments. The lending criteria of most financial institutions has now changed and there is encouragement for this type of arrangement which is seen as beneficial for the national economy as well as providing housing for those who might not otherwise be able to afford to buy property for their own occupation.

The returns for landlords after taking account of all expenses is typically in the range of 7% to 10% dependent to a large degree on the location and the condition of the rented property. To make a profit the rental charged needs to be about 40% - 50% higher than the repayments on the loan. The further benefit of this type of investment is that it may be inflation proof with capital appreciation of the value of the property exceeding the inflation rate in most years.

In order to satisfy the lenders requirements for a buy to let mortgage quote most of them will insist on a professional report on the property from a letting agent who is usually required to be a member of the Association of Residential Letting Agents which will include estimated gross income and overall costs together with general information on the locality and value of the property. Some lenders will require a letting agent to be employed to manage the property and collect rents and this proposal will enhance the credit worthiness of the application for borrowing.

Once the finances are in place a solicitor should be employed to deal with the conveyancing transaction and thereafter unless the new owner is very experienced, professional help should be sought from a qualified letting agent who will vet prospective tenants, prepare a tenancy agreement, advise on and arrange inventory and condition reports, deal with utility accounts and council tax and collect rent prior to paying net balances after deduction of the letting agents fees into the landlord's bank account.

Renting property appeals particularly to young mobile people due of changing lifestyles, improving financial status and unstable employment patterns. Altering financial circumstances have combined to encourage younger people to rent rather than to own their homes however with enhanced affluence most tenants will build up savings and eventually buy their own homes. If you would like free information on any of these matters just call our 24/7 quoteline or complete and send the contact form and one of our experts will speak to you with no charge and with no obligation.