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Best Buy To Let Mortgages

Buy to Let - Buy to let investing has become very popular over the years and in 2006 10% of all mortgages taken out were buy to let mortgages. Buy to let properties can be in a good investment but homework should be done before buying.

Buy to let property is a good long-term investment with UK population numbers rising; there is currently a never-ending demand for rental accommodation. Nowadays property investors have a wider choice of mortgage deals than they did originally with many opting for an interest only mortgage. This is cheaper as only the interest is paid off with the remainder paid when the property is sold.

There are the professional landlords who have five to hundreds of properties in the portfolios and amateur landlords who have only one or so properties, some buying a property for their children at university and others use buy to let properties to help towards a retirement fund. The buy to let property must have a rental income of at least 125% of the interest only mortgage payments. The mortgage valuation will include an estimate of rental income.

Points to think about include; what type of property is to be bought, the area, location in respect of transport links, schools, shops and amenities, condition of property and rental income (this is best found out by asking local estate agents and looking in local papers for comparisons).

A good idea is to consider a good letting agent who will vet prospective tenants and take up references and deposits plus manage the property if required. They can also able to collect rents.

Good areas to purchase buy to let properties include towns and city centres especially those with a university as student lets offer a good return. Also remember that property may have void periods during a year and money must be available for such times.