Becoming a private landlord should not be seen as an easy way of making money; it can be riskier and more complicated and there is no guarantee that house prices will rise. That said, having a second property to let to tenants could reap considerable financial rewards over time.
When buying a second property to let, you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make a profit month on month or are you looking to make a profit through increased value over time? The decision may affect the type of property you purchase, and the location.
When you manage a property there are many costs involved in addition to the monthly mortgage repayments. As a guide, you should be aiming to achieve a gross rent of about 135% of the rental property's interest only mortgage repayments in order to cover your costs should anything go wrong.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE MOST BUY TO LET MORTGAGES
The Mortgage Shop normally charge a fee for mortgage advice. However, this will be dependent on your circumstances. Our typical fee is £374.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Mortgage Shop (Kent) Limited is an Appointed Representative of the PRIMIS Mortgage Network, which is a trading name of Personal Touch Financial Services Limited which is authorised and regulated by the Financial Conduct Authority (FCA). Sales, lettings and holiday lets are not regulated by the FCA.
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