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Becoming a private landlord should not be seen as an easy way of making money. Although it can often be financially beneficial, it can also be a risky, more time consuming, more complicated compared with other forms of investment. There is also no guarantee that house prices will rise, and may even decline.


That being said, having a second property to Let to tenants could reap considerable financial rewards over time, and it is no secret that many people in the UK have decided to invest their money into property as a long-term investment.


There are 3 key differences with Buy to Let mortgages:


1) Rent Potential - The decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not ever considered.


2) Interest Rate - Buy to Let mortgages have slightly higher interest rates.


3) Larger Deposit - Typically a minimum of 20 -25% of the property's value is required as a deposit.


When buying a second property to Let, you will need to decide whether your primary objective is Income, or Capital Growth; as this may alter what, where, when, or how you purchase a property.


In other words, are you looking to make a profit month on month, or are you looking to make a profit through increased equity from the second property if it increases in value over time?


When you manage a property there are many costs involved in addition to the monthly mortgage repayments, including Property upkeep, Letting agent's fees, Ground rent / service charges, Legal insurance, Building and Contents Insurance, Furnishings, and Decorating costs. When choosing a property to let, it is always wise to take advice from local letting agents to determine; what types of properties are in need and which parts of the town are best or most wanted.


Please note that with all mortgages, you should always seek independent legal and tax advice in relation to any property, and finance matters that relate to you from an Accountant and/or Solicitor. 


Your property may be repossessed if you do not keep up repayments on your mortgage, so it is imperative that we obtain the most suitable product for you.