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Buy To Let Mortgages

Click Here For a Buy-to-Let Mortgage Quote


Thinking of becoming a landlord and entering the buy to let market? Our simple twenty step guide can help you through the maze.

1. You can usually borrow a maximum of 80 per cent of the value of the property, so this will determine your price range.

2. Get advice from a local estate agent about the properties that are most likely to be let in the area and about average rental yields.

3. Research mortgages and apply for an acceptance in principle if you spot a suitable deal. You will need to produce expected rental yields in addition to salary details.

4. Calculate the deposit you have available. Also budget for buying costs such as surveys, fees and furnishings.

5. If the property is old, you should commission a Homebuyer’s Report or a full structural survey. This is essential as you will be responsible for maintenance.

6. Instruct your solicitor to carry out the purchase and provide them with details of the property, estate agent, seller and your lender.

7. Your lender receives a valuation report and, if everything is in order, agrees the mortgage.

8. Your solicitor carries out a local authority search and confirms the legality of the title deeds. If all is in order, the solicitor will draw up the contract and send you the legal paperwork.

9. Pay the deposit, sign and return the contract and the solicitor will exchange contracts and arrange a completion date. You are now legally committed to the sale.

10. If the property is freehold, you must get adequate building insurance cover in place from the time of exchange (before completion).

11. Get quotes for any building or renovation work and decorating that may be necessary.

12. On completion day call the seller’s estate agent to pick up the keys. The property is yours to let.

13. Get the builders and decorators in as soon as you can. Advertise for tenants just before the work is completed.

14. Arrange to meet prospective tenants and show them the property once it is ready.

15. If you find suitable tenants, arrange for them to supply you with employer, bank and personal references. Make sure you check these and don’t take the house off the market until the references are confirmed and a holding fee paid.

16. Get a deposit of one month’s rent to confirm the tenancy. If the rent is to be paid by standing order, arrange for this to be set up.

17. Make last minute preparations to the property to ensure that it meets health and safety requirements and write a comprehensive inventory.

18. Draw up a tenancy agreement.

19. Contact utility companies and the council to arrange for bills to be transferred into the tenants’ names.

20. Get a month’s rent in advance on the day the tenants move in. Ask them to sign the tenancy agreement and the inventory. Hand over the keys.

Mortgage Calculator

Rate Interest-only
mortgage
Repayment
mortgage
2.00% £1.67 £4.27
2.50% £2.09 £4.52
3.00% £2.50 £4.79
3.50% £2.92 £5.06
4.00% £3.34 £5.33
4.50% £3.75 £5.62
5.00% £4.17 £5.91
5.50% £4.59 £6.21
6.00% £5.00 £6.52
6.50% £5.42 £6.83
7.00% £5.84 £7.15
7.50% £6.25 £7.48
8.00% £6.67 £7.81
8.50% £7.09 £8.14
9.00% £7.50 £8.48
9.50% £7.92 £8.83
10.00% £8.34 £9.18

Monthly cost per £1,000 of mortgage (excluding) any repayment vehicle). Repayment figures assume a mortgage term of 25 years. (Source: Halifax 5/2002)


For more information on buy to let mortgages or building a portfolio of investment properties, please click here.



 
 

 


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We are neither a mortgage lender nor an independent financial adviser and, as such, are unable to offer financial advice.
Enquiries generated via this website are passed on to independent financial advisers and mortgage brokers.

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

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