May 2015 saw the buy to let market rise again applications and completions were up on figures for the same period last year. Investors are without doubt looking to secure new properties whilst mortgage rates are in their favour. Figures show existing investors are expanding their portfolios rapidly especially in the London and South East areas. Increased property values don’t seem to be deterring the investor as they see the future sell on value as the key to profitability. We have also seen a marked increase of new investors into the buy to let market, with the new pension laws now coming into force a new area of investment has opened up. One of our new clients commented “the returns I have been getting on our investments have fallen every year for the last 6 years”. “My wife and I have decided to enter the buy-to-let market to help boost our income in retirement and we know plenty of other people in the same frame of mind”. Top tips on buy to let properties - Choose an area you know for your buy to let investment. - Make sure the area has potential for growth in the future. - Do the figure work and be sure of the level of rental income you can expect. - Think about the type of tenant you are looking for and match the property to fit. - Check with an accountant your own tax position if you went ahead. - Consider protecting your rental income and explore the options. - Research mortgage options. - Fixed rate or Tracker what suits your needs? These are just some of the important areas for new investors to consider, but most important is to get the right mortgage for your needs. Too often these day’s clients tend to go for the cheapest without doing crucial research into the rules the plan has. We would always recommend talking to a professional mortgage adviser as they will do all the research on your behalf. Can we help? If you require assistance with your mortgage please call one of our experienced advisers and we will be pleased to help.
