"I'm Buying a Property to Let"

The right properties bought to let can be a good investment - although conditions in the present market (August 2008) are more challenging than they were as little as a year ago. Nonetheless, property values over the medium to long term have generally shown less volatility than the stock market, and this is still attracting investors into the buy-to-let market.

There are still a number of lenders are offering specialist mortgage packages for the buy to let market. Generally speaking, lenders will offer loans of up to 85% of the value of investment property, as long as the rental income exceeds the mortgage payment by at least 125%. At present (August 2008), rental yields in many areas are lower in comparison to the value of the property than they were two or three years ago, which may restrict the size of the loan offered. In response to this, some lenders have introduced schemes which allow other income to be taken into account, or which require less than 125% rental cover. Contact us for details.

If you are not experienced in this type of venture, caution should be exercised before entering the buy to let market, with due consideration being given to the possibility of a slump in the demand for rented property or falling property values at some time in the future, or the effect of any periods of non-tenancy.

For expert advice, contact The Mortgage Company Limited and we will be happy to help you, whatever your query.

Your property may be repossessed if you do not
keep up repayments on your mortgage.

The Financial Services Authority does not regulate Commercial Mortgages and Buy to Let mortgages.