How-to Guides » OLD GUIDE Become a buy-to-let landlord

Get your finances sorted early

9 tips on this task  |  Tweet

1) Save a large deposit
The buy-to-let mortgage market has changed considerably in the last 18 months and you will now need a 25% deposit in order to get a mortgage. This is a huge amount -- £50,000 on a £200,000 property.

In fact, even 25% won't open up the best deals, for which you will need a 40% deposit.

2) Consider the costs
The mortgage needs to be paid each and every month regardless of whether you have tenants in the property or not, and remember that your tenants might miss payments through financial difficulties or any other problems.

You need to know you have access to cash to cover these void periods, although you can take insurance to cover rental arrears.

It’s not just the mortgage either – you may be faced with standing charges on utility bills, council tax, building charges, building insurance and contents insurance.

3) Choose the right mortgage
They may have had a difficult 18 months but when it comes to buy-to-let, mortgage brokers are still by far your best route to market.

Not only that, a broker understands the complexities of buy-to let mortgages and property purchase and can offer advice and access to lenders that you simply cannot get as a direct customer.

Start with an enquiry to lovemoney.com mortgages.