Buy-to-Let Property

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Buy-to-Let Property

Buying a property to let as a commercial enterprise has been around for a long time but it is only relatively recently that it has become within the reach of ordinary people.

In the past mortgage lenders charged commercial rates of interest and imposed additional surcharges on mortgages for buy-to-let properties and so this excluded most people on an average income.

Residential Letting

However, this situation has now changed thanks to the Association of Residential Letting Agents (ARLA) who initiated the introduction of a new type of mortgage which not only takes into consideration the current occupational earnings of an individual but also the earning potential (rental income) of the property to be let.

This means that many more people can now afford to take out an additional mortgage on an investment property.

Not only is this good news for potential private landlords but it is also good news for the private rental market which in Britain lags significantly behind many other countries.

Buying to let can be an excellent investment if you do your homework and choose your property carefully. Just like any other commercial business you should learn as much as you can about the letting business and check out the local property markets and competition before taking the plunge. If you buy an unsuitable property in an unsuitable location you may be disappointed by the financial return.

Buying a property

But buying a property to let is usually considered to be a good and reliable form of long-term investment from which you stand to benefit both in terms of the rental income potential and possible increase (capital growth) in the market value of the property.

• To easily arrange your buy-to-let mortgage, visit us at Mortgages.co.uk