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Where To Buy Mortgages

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With recent figures showing the average price of a house in the United Kingdom now a staggering 167,000 GBP, it's becoming increasingly difficult for people to buy a home, especially in the first-time buyer's market. This has led to a dramatic increase in people choosing to rent a property, as opposed to buying, while they try and save for a deposit for a new home. Men and women are also choosing to stay single these days, as opposed to living with someone or marrying them, therefore leading to an increase in demand in the rental market as well.

The benefits of someone taking a buy-to-let mortgage out are numerous. With interest rates in the United Kingdom at a good high, buy-to-let is an excellent financial gain for those investors who have property that they are letting out. Not only do they own a property whose value is rising all the time, therefore it's a wonderful investment for the future, but they are still making money by charging rent on the property. Depending on the size of the house being let, this can lead to an extremely tidy profit.

For example, say you buy a three-bedroom house and the monthly mortgage is an average 1,000 GBP. If you rent that property out to three separate tenants as a house share, and charge a very reasonable 500 GBP per month per person, you're making an immediate profit of 500 GBP every month, as well as paying for your mortgage. You can see quite easily why buy-to-let is such an attractive proposition.

It's not just the traditional landlords who are benefiting, either. Whereas in the past you may have heard the word landlord and thought of a middle-aged businessman, now it's more frequently younger people who are joining this lucrative market. According to the National Landlords Association, or NLA, the market has changed considerably in the last few years and more and more young landlords are now the norm. With a yield of around six per cent in the British market alone, which in itself will see the average investor make a profitable return of over sixty per cent, it's not surprising that the buy-to-let market is attracting all ages.

Indeed, such is the popularity of this new way to own a property, the buy-to-let market in the United Kingdom is now second only to Poland in this particular area. And with the Polish economy not really allowing for any other option except to rent, this is proof indeed that this is just the start of an extremely profitable avenue.

Where To Buy Mortgages

The Buy to Let property market seems to more popular than ever. In fact, Buy to Let has been steadily increasing in popularity since the mid-nineties and experts reveal that the market shows no real sign of slowing down. Buy to Let seems to be the ideal property investment; simply purchase a property and then let the tenants cover the mortgage. However, there a number of things to be taken into consideration when buying a second property which you are not planning to live in and one the most important one is buy to let mortgages.

Buy to Let Mortgages Basics

Buy to Let investment involves buying a property with the intention of making a profit through letting. There is an increasing amount of choice in the Buy to Let mortgage market and this is mainly due to the increase in Buy to Let investing. The conditions for Buy to Let mortgages differ from standard mortgages as the intended purpose for buying the property are different.

Some of the following differences should be considered before going ahead with a Buy to Let mortgage and worth speaking to a specialist buy to let mortgage about:

?Higher Interest Rates ? Buy to Let mortgages usually have higher than normal interest rates.

?Rent - The lender considers your income per annum, together with the amount of rent which will be charged when letting out the property.

?Deposit ? Lenders may require a higher deposit than the average standard mortgage deposit ? this may be as high as 25% of the property value.

Buy to Let Intentions

Another point to consider when looking at Buy to Let Mortgages is what the main reason for buying the property is. This may sound a little strange as you are obviously buying the property to let it but people have different goals involved with their Buy to Let property. Have a look at two differing goals of Buy to Let investors:

?Make a profit from the investment in the property itself and re-sell it when house prices are high

?Aim for a month by month profit from the rent you charge

Buy to Let Costs

Regardless of the reasons you might have for buying a property you will also need to consider all the extra costs you may incur, some to consider are:

?Tax issues

?Letting Agency Fees

?Property Maintenance

?Insurance (building insurance, contents insurance, home insurance, legal insurance)

?Furnishing Expenses

Before making any buy to let property purchases you should always discuss your investment requirements in detail with a Buy to Let mortgage broker. They can help maximise the potential profit from your property investments and normally their advice is free.

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About Author

Both Derek Both & Elizabeth Grant are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Derek Both has sinced written about articles on various topics from Home Accessories, Customer Service and Family Travel. Teacher Marks are who focus on practice of surveyors specialising in all aspects of Central London commercial property.. Derek Both's top article generates over 1500000 views. to your Favourites.

Elizabeth Grant has sinced written about articles on various topics from Mortgage, Retirement and Finances. Elizabeth Grant writes exclusively for specialist mortgage websites. To read more of Elizabeth 's articles on Buy to Let Mortgages please v. Elizabeth Grant's top article generates over 40500 views. to your Favourites.

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