This time last year, buy to let mortgages were a hot commodity, with £1 in every £8 of mortgage lending’s going to landlords buying properties to rent out.
2014 is looking to be no different, especially with landlord loan rates taking a nose dive in February this year making rates cheaper now than before the credit crisis, meaning there has never been a better time to either start or add to your property portfolio.
And you won’t be alone, with two in three landlords planning to add to their portfolio this year. With house price growth stretching out from London and touching pretty much every region, mortgage lending and transaction volumes are high, with mortgage costs remaining low and rent prices finally stabilising – all contributing to attractive rental yields and a nice bonus of capital growth.
- 1. It provides additional income
Renting a property does generate an additional income, with low mortgage rates allowing you to make a profit on rental prices. Any way to top up your income by £8000-£15000 per year, per property is going to be attractive and it is the main reason that people decide to become landlords. This extra income does not come for nothing though, and you are bound by certain laws and regulations as a landlord that you have to abide by.
- 2. Growth of value of your asset
Also known as capital gains, simply put it is the amount that your property was worth when you bought it, compared to its value today. This can, and will rise and fall over a long period of time, however investing in property has usually provided an excellent return.
- Low cost finance
Becoming a landlord means that you have access to low cost finance, which allows you to develop a portfolio, with cheaper mortgages allowing you to maximise the cash that you have available and reduce your tax liability.
Becoming a landlord can be very rewarding, in more ways than just financial; knowing that you have provided someone with a home can be quite gratifying and depending on how hands on or off you decide to be, can also be quite challenging.
It all starts with finding and talking to a Mortgage Broker, and here at NM Finance, we have the expertise to get you off on the right foot.
We help you find the best deal for you and your plan, and advise throughout the entire process to give you the best chance of success.
With our quick, online mortgage calculator, you can get an idea of what is available to you, however nothing beats talking to us in person, so call today on 01603 258268 to arrange an appointment.
