Contractor Buy to Let Mortgage
Buy to Let mortgages have become an increasingly popular investment for contractors in the UK. The reason for this is that many contractors now see property as a valuable part of their retirement plan, as well as a profitable long-term opportunity for their investment portfolio.
There are numerous lenders that offer mortgages specifically designed for the buy to let market. The majority will lend up to 75% of the purchase price of the property. Typically, they offer interest rates about half a percent higher than a normal standard variable rate mortgage. However, as a contractor you may find it difficult to secure funding as lenders are regularly changing their criteria, both deposit requirements, and the rental calculations needed to be satisfied.
How CMME can help?
We offer a straightforward buy to let mortgage advisory service combined with great service leaving you time to concentrate on building up your property portfolio. CMME have assisted thousands of contractors through the buy to let mortgage process and are experienced in helping them become successful landlords.
What to consider before buying a property?
Tenants: You need to decide what tenants you want to attract, for example families, students or couples. Once you have made up your mind, you can look in to the type of property and location that will suit your tenants.
Condition: It is important to evaluate the property and work out the cost of the necessary improvements. As a result of the work that needs doing, you may find this will affect the amount you can borrow. In addition you will have to have enough money to pay for the property while the work is being completed.
Location: Research in to the best places to rent. Putting a little bit of effort in to this part of the process will ensure you are not left with an empty house later on in the future. Consider everything from public transport links to schools and parking.
Rental Cost: Look in to similar rental properties and see how much they are charging. It is important to note that there is no guarantee you will receive the monthly payments that you set, or that your property will rise in value in the future.