![]() However, the initial rates tend to be higher than those of variable mortgages. Fixed-rate or variable?Ī fixed-rate mortgage guarantees that your payments remain the same during the fixed term, even if interest rates rise. Check local requirements in Jersey, Guernsey and the Isle of Man to find out. You might need to pay tax on a buy-to-let property purchase. ![]() Don’t forget to factor in the usual property purchase costs too, such as surveys and legal fees. Buy-to-let mortgage costsĪ higher deposit may be needed for a buy-to-let property (typically at least 25%) and you’ll find that the interest rates on buy-to-let mortgages can be higher than residential mortgages. As a guide, many lenders specify that your rental and other income may need to be 50% higher than your mortgage payment and/or commitments. For a start, the amount you can borrow depends largely on the rental income you expect to get from the property - although we may consider other income in some circumstances. Which buy-to-let mortgage is right for you? About buy-to-let mortgagesĪ buy-to-let mortgage isn’t the same as the mortgage you may have for your own home. It may be helpful to find out what other landlords and agents are charging for various property types. Estimate the effect of any periods when the property is vacant too. It’s really important to work out what you’ll need to spend each year on buy-to-let mortgage payments and other costs, like insurance, repairs, service charges and agent fees. The rent you charge must at least cover your property’s running costs. Just make sure you speak to more than one agent to get a rounded view of the local market. They’ll know what’s in demand and may even help you spot a gap in the market. To help you choose the right property for your target tenant, you could talk to estate and letting agents. Every day the property is empty, you’re losing income, so it’s important to think about this. If you have the wrong property or location for your target tenants, you may struggle to rent it successfully. ![]() Seasonal workers, families and young professionals have different requirements for a property and its location. Choosing a property and mortgage Who will your tenants be?įocusing on a specific type of tenant for your property can help you to make an informed decision.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |