2nd-Mortgage

Taking your first steps in the buy to let marketplace can be a daunting prospect. However, with the right advice, the right mortgage and the right property; there’s no reason why anyone can’t become a successful property investor.

Start by talking to local lettings agents or property managers. They will be able to give you advice on what types of properties are most in demand, the most desirable areas for tenants and what you can expect as a monthly rental income. Remember you’re talking to the experts so don’t make the mistake of thinking you know best.

A property purchase is a very large investment. It doesn’t matter if you are purchasing for your own use or whether you are buying to let out it is an investment which should be taken with extreme care and attention. However, it is very important that you get the right guidance with the financing of your buy to let investment property as securing the best buy to let mortgages products can result in some very profitable returns. To do this, you will need to have your funds in place so that you can clinch the deal before your competition moves in. Buy to let is a long term investment so you need the same ‘mind-set’ when you purchase property as you would to if you were making a large investment in the stock market.

Many investors who bought property as early as 1996 have experienced high returns on the capital value of their properties. This has allowed them to remortgage in order to release equity and buy even more property with the proceeds. Additionally, people who did not invest early have witnessed the returns the early investors have experienced and have also purchased buy-to-let property, hoping for similar medium to long-term gains.

These factors have combined to ensure that the property market remains strong and that prices continue to rise beyond the rate of inflation each year. The buy to let mortgages market has also flourished in line with the property market. In 1999 there were 70,000 outstanding buy to let mortgages in the UK. In 2006 the number has increased ten-fold to 700,000.