Many people believe that the Buy to Let bubble has burst, but there is in fact still a large market out there for people who want to buy a property as an investment and rent it out. This is an important sector of the mortgage market, because not everybody can afford to buy a home and so it helps to keep the property market afloat.
If you are looking for a contractor mortgage to fund a buy to let property, we can help. We offer mortgage advice to contractors over the telephone and we have specialist knowledge in this area to help you. Contractor mortgages can be complex, however as buy to let mortgages generally fund themselves, this is a great way to add to your property portfolio if that is what you want to do.
With a buy to let contractor mortgage, it is no more complicated than a normal mortgage. You will confirm to the mortgage lender that you will be receiving rental income to cover the monthly mortgage payments, however your income will still need to be assessed as the lender will still want to know that you can afford to make the mortgage repayments if the property is empty for any period of time.
We can assist you through the entire but to let contractor mortgage process from start to finish, as we know it’s an important venture for you. Our team of dedicated and experienced contractor mortgage advisers will be there every step of the way to lend a hand, making the process as easy as it can be. We understand that if you’ve not done a buy to let contractor mortgage before, it can be daunting and you may have concerns, but we are able to guide you through it all.
The market is still fruitful if you want to venture into the realms of but to let, and there is the added benefit that interest rates are still quite low when compared with historical rates. But what else is there to consider?
Pick Your Area Carefully! You need to ensure that you opt to buy a property in a promising area. It needs to be somewhere that is popular with tenants, possibly with schools or shops nearby. Somewhere close to public transport will often attract more tenants than an area that is secluded. Perhaps you can look to buy in an area that is popular with students – but beware that students only rent for certain parts of the year so you may end up with an empty property during holiday seasons.
Consider areas that are further away. If your local area is not ideal for a buy to let property, consider looking in a nearby city or town to increase the chances of getting a tenant who is likely to stay for a while. You don’t want the property to be empty as a buy to let is an investment.
Be realistic. Remember that although there is a still money to be made from buy to let properties, you shouldn’t be expecting to be a millionaire in 12 months time. Property investments grow slowly and with as the property market is still rather slow, growth may be minimal for a few years.
Have a backup plan. Ensure that you have enough funds just in case you do have a dry spell where your property is not being rented out. The last thing that you want is for a tenant to leave and to be unable to afford the monthly mortgage repayments on the property.
Struggling to get to grips with mortgage related terms? Use our quick-reference guide to help you.