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Buy-To-Let Mortgages
With the recent rise in property values buying residential property to let
out as a landlord is becoming an increasingly popular investment choice.
There are two main factors that make buy-to-let an attractive proposition
for many people.
Firstly, buying to let offers you the potential to borrow a large portion
of the property value. If the value of the property increases you get to
keep not only the growth of your original deposit, but of the property as
a whole.
Secondly, a consistent flow of income from tenants could not only cover
your mortgage repayments and other expenses, but also leave you with some
extra income alongside your capital growth.
However, there are a number of risks you should take into consideration
that could result in you losing your investment:
property prices may fall;
interest rates may rise;
your money is tied up in the investment;
the property will require maintenance;
you may experience problems finding tenants, and mortgage payments will
need to be maintained even when no tenants are living in the property.
Property is a long term investment and is by no means risk free. It is
essential you seek professional advice before seriously considering buying
to let.
Please note:
Your home may be repossessed if you do not keep up repayments on your
mortgage.
The Financial Services Authority does not regulate some aspects of Buy to
Let mortgages.
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