Buying a property for the purpose of letting it to a tenant can be an attractive proposition, but becoming a private landlord should not be seen as an easy way to make money.
While renting out a property can be risky and complicated, it can also be a good way to create another income stream providing you have done your due diligence and have obtained the expert advice of a financial Adviser to ensure the buy to let mortgage is set up correctly.
Why take out a buy to let mortgage
Buy to let mortgages are designed for those who wish to purchase a property for the sole purpose of putting it on the rental market. Many chose to become a private landlord for the financial benefits.
Firstly, providing the amount of rent charged exceeds the monthly mortgage costs and any property maintenance costs, it can provide a lucrative income stream in addition to your main source of income.
Secondly, purchasing a property can have the potential for long-term accumulation of capital growth. Meaning that when you come to sell the property it may have increased in value and therefore you will get back more than you originally invested.
With changes to the way buy to let mortgages work in relation to tax in recent years, it is always recommended that you seek independent financial advice to see how the changes could impact your tax obligations and profits from your rental property.
It is also advisable to seek advice on the types of insurance that are available to you to ensure your rental income when the property is vacant and covering the property against wear and tear and damage.
Based in Northwich, our mortgage consultants at CRS can help you understand buy to let mortgages so you can make an informed decision on whether it is the right investment for you.
The Financial Conduct Authority does not regulate some forms of buy to let mortgages.
Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured on it.
Looking for buy to let mortgage advice in Cheshire?
If you would like buy to let mortgage advice, please get in touch via our enquiry form and a member of our team will be in contact to discuss your requirements and the best options for your circumstances.
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