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

How to pick the right property, get the right mortgage, take out the right insurance, choose the right letting agent and most importantly, unravel all that red tape!

Get your finances sorted early

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Save a large deposit
The buy-to-let mortgage market has changed considerably in the last couple of years 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.

What’s more, for the very best deals you’re more likely to need a 40% deposit.

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.

Choose the right mortgage
They may have had a difficult few years, 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.

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  • Andy Kerr
    Love rating 0
    Andy Kerr said

    If you have the cash, and your yield from rent will beat or come close to current rates of RPI, don't bother with a BTl....Fund it yourself.

    Report on 16 October 2011  |  Love thisLove  0 love

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