Investing in a buy to let property

The property market in the UK has had a very interesting last few years. Today brick and mortar is still one of the best investments you can make, especially in areas where prices are rising and demand is high. If you choose to, you could be really successful by investing in a buy to let property. Your Space Mortgages Bristol can help, offering advice and finding deals for you. We have a great reputation as the most reliable mortgage advisors Bristol can offer.

Property investment

The key to your success with a property investment is to choose a quality asset in a good area that will give you lots of potential tenants. You should look at the types of property that have the highest demand and the hottest locations. It is also a good idea to look at the potential rental income you can earn and the yield. Plus, you must think about your costs, including stamp duty, insurance, management, and any letting fees.

Buy to let mortgage

If you are looking at buy to let investments you need to ensure you get your finances right. You will need to arrange the right kind of mortgage if you need one; most lenders prefer that you get a btl mortgage rather than a standard residential one. They offer more security for the lender, usually requiring larger deposits.

Commonly these mortgages will be interest only. That means the property owner will pay off the interest every month and then pay the capital debt at the end of the agreement. However, there are repayment options available.

Limited company buy to let

One thing some investors do is set up a limited company to purchase buy to let properties. This has become very popular in the last few years because it offers some really impressive tax incentives. For example, it gives the landlord the ability to offset the interest on their mortgage against the profits. It is also cheaper to pay corporation tax than it is to pay higher income tax rates for individuals.