UK Buy to Let mortgage Guide

Investing in bricks and mortar continues to be beneficial for the astute investor. In this market, as long as you control and manage any risk and conduct thorough due diligence, good returns are still being achieved. Before you make a buy to let investment, I urge you to follow these simple guidelines: rn1. Find the mortgage thats right for you. Once you have found a potential property, the most important thing to get right is the mortgage. A mortgage advisor who specialises in buy to let mortgages can help you negotiate the most suitable deal with lenders. You will need to put down a deposit and many buy to let mortgages are only available to investors who put down a minimum percentage of the property purchase price. A FREE, United Kingdom, buy to let mortgage calculator can be found here: http://www.thebuytoletmortgage.co.uk/calculator/ 2. Market Research In areas where there is a good rental market, you should not only conduct your own research but speak to a buy to let mortgage expert for further advice. If doing your own research, you should consider talking with the local authority or housing departments to ask if there is a demand in that area for rental accomodation. New companies setting up and/or moving into the area is a good sign. A student population is also a good source for potential tenants so having universities and colleges nearby is highly advantageous. To find out what areas can return the highest yields, conduct internet based research and speak with letting agents and estate agents in areas that interest you. rn3. Location Location Location New developments nearby, recent or upcoming improvements in transport links and new business growth can provide an expanding tenant base. Keep a look out also for nearby schools, railway stations and major motorways as families and young professionals will be more likely to look towards areas which offer these facilities. Remember that property investment is a business, so dont let your personal tastes or preferences affect the type of property you look to purchase. 4. Choosing Tenants Choosing the right tenants is important. You will find most tenants to be honest and reliable, but a small minitory may cause some problems. Be they families, professionals or students as your ideal tenants; ensure the properties furnishings suit your target market. Advertise your property online with well known websites as well as in local publications. When tenants call, ask lots of questions. You should always ask for details of employment, bank, previous landlord and even personal references. Make sure you follow up and actually contact any references provided before handing over the keys to the property! You should take at least one months rent up-front as a security deposit and set up the rent payments as a monthly direct debit. Prepare a proper, full and concise, inventory to check off when your tenant moves in and ensure they sign up for the utility bills and council tax. 5. Future and Finance In the same way that wealthy people have done for generations, ordinary people can indeed make money by investing in property. However, property investment is long-term. On average, and notwithstanding major economic disasters, UK property doubles in value every 10 to 15 years so you cannot expect a huge return on an investment overnight. When buying an investment property, look to the future and fully research the potential in the property to achieve greater returns. As stated earlier, gaining local knowledge is important and you should always keep in mind things such as new developments nearby, upgrading of transport links and local business growth. I hope this guide has been useful and would like to wish you every success in your buy to let property investment ventures!