How easy is it to become a First Time Landlord?
More and more of us think of extra income sources and investing in properties might be the right way to boost income or provide yourself with a retirement income or asset.
We often meet customers who are a bit unsure and who think it is very difficult to start.
Although, as with any other business, there are risks related to an investment, let’s focus on the positives and answer some of frequently asked questions!
First of all how big deposit does one need to buy a house to let? Typically, around 25% of purchase price needs to be presented as a deposit. It can be your savings, a gift or it can be capital raised on remortgage from another property, for example your residential home.
Secondly, do I need to earn certain income to get a buy to let mortgage? Yes, some lenders do require that you earn income of ca. £25k annual income however others don’t! There are so many lenders and so many options that you had better speak to a mortgage broker is you want to become a landlord sooner rather than later.
Should I consider interest only or capital repayment type of mortgage? It depends on your investment strategy and long-term plan. Both options are possible but it will have to be well thought through.
The above are just a couple of questions being asked and there is loads more! Although a mortgage broker cannot dictate your investment strategy, we can help you by showing you options and assessing your circumstances. Contact us for more information if you would like to become a landlord/landlady.
GRN Financial Services Limited is an appointed representative of PRIMIS Mortgage Network. PRIMIS Mortgage Network is a trading style of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority Our fees and charges vary depending on the Services we provide to you. We typically charge a fee of £350. Some of products and services may not be regulated by the Financial Conduct Authority. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE