Other benefits to doing Buy-To-Let:  

  1 An investment in the future and a chance to earn a monthly income. 

2 You can use your Buy-To-Let as a pension 

3 You can maximise return by capital gain and rent received 

4 Spread your investment across a portfolio of properties  

 The key differences between Buy-To Let and a normal property mortgage

When you are looking for a home you will be talking to banks about a mortgage that will be paid of monthly. You will have saved up a deposit (usually 10% of the price).  

Whereas a Buy-To-Let mortgage is a secured loan or mortgage for investment. These types of mortgage involves specific lending criteria and you can expect to pay higher interest rates.   

Banks will also use a different calculation to work out how much can be borrowed, they may also take into consideration the potential rental income. Typically lenders will expect the rental income to be 25% higher than the mortgage repayments so take this into consideration before applying.  

  Things to consider when doing buy-to-let

 Landlord insurance is a legal requirement to own a buy-to-let property, if you are mortgaging the property and is also for your own security. You should definitely consider landlord insurance. Even if you intend to rent the property to someone you know, landlord insurance will protect you and your tenants. Landlord insurance will pay if:  

• Your tenants don’t pay their rent (depending upon your policy) 
• The property is damaged 
• Claims against you if someone in the property is injured  

The importance of a proper tenancy agreement

Having a proper tenancy in place will protect all the parties involved. Even if you are renting to a friend or family member, a proper tenancy agreement will ensure that there are no awkward situations. Not having a tenancy will drastically impact any court case you might have against them.  

Another important things to note while buying buy to let property which includes:  

• Affordability is based on rental received and not on applicant’s individual income
• Can be purchased with no income
• Foreign nationals can even buy property in the UK
• Help generate monthly income
• Option to purchase under individual name or under Limited company

 How can you ensure you get the right mortgage?

It can be a worrying time when looking for mortgages, you might be worrying about taking the wrong loan or paying to much interest. That is why a lot of people go through a broker, so that they can talk through the options with someone who has your best interests at heart. Funding Hut have contacts at a lot at mortgage providers so you can be sure you will get the perfect mortgage for you.  

• Funding Hut deal in whole mortgage market
• Can help provide lowest rate and best suitable product for the client
• Deal with complex cases on a regular basis 
• We help our customers from start to end 
• The Funding Hut team have wealth of experience in this industry 

How will Brexit effect the housing market?  

A lot of people are concerned about whether Brexit will have an impact on the housing market.  

There is a lot of uncertainty around Brexit at the moment and what impact it is going to have on the housing market. There is a lot of people asking whether they should buy now or wait until the UK has left the EU and see what the market looks like. The future isn’t mapped out, if you are in the position to buy now then it is best to start proceedings now. The market seems to be stable at the moment even though house prices are creeping up. 

So in conclusion, if you are looking for a Buy-To-Let property then make sure you investigate landlord insurance, getting a proper tenancy agreement in place and talk to the Funding Hut team about getting the best deal on the mortgage market.  

The post Benefits of investing in a Buy-To-Let property appeared first on Funding Hut.

The housing market is unquestionably one of those uncertainties. Since the referendum vote in 2016, house prices have plummeted in most areas of the UK except Scotland. However, transactional volumes (the number of property sales in any given month) have remained stagnant.

First-time buyers
For first-time buyers, settling on a mortgage for a property most likely isn’t in your best interest. With the recent low confidence in the housing market, first time buyers are holding off to jump on the property ladder until market stabilisation. This is understandable as they will be new to the market/property industry and can be risk-averse.

Seasoned property owners
Seasoned property owners stand a much better chance of remaining stable through these uncertainties, specifically due to familiarity of the market. Additionally, those who own two or more properties have a much higher chance of absorbing the cost of losses if the market does decline.

Bank of England rate increase
There is low chance of a rate increase in 2019 as government would also like to help stabilise the market. Everyone has their own views on choosing fixed rate or variable rate mortgages so it might be a good option to lock the interest rate for next 5 years with fixed rates.

We’re here to help
If you’re looking to purchase a property, either as a first-time buyer or a seasoned property owner, we can assist you. Funding Hut offers free consultation and advice on the post-Brexit property landscape.
Give us a call today on 0203 900 0970 or email enquiries@fundinghut.co.uk

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