In it’s most basic form this mistake manifests as not shopping around for the best LTV (loan to value ratio) or the best interest rate (½% over 20 years makes a lot of difference) or finding the loan with the least penalties if you want to swop or pay it off early. A more sophisticated…
DetailsThere were two major changes on the “road” to buy-to-let: A change to the landlord and tenant law A desire by ARLA to promote its member’s business The first step towards buy-to-let as we now know it was that the law on landlord and tenant was changed to make letting easier and more financially attractive…
DetailsThe buy-to-let scheme was designed to address the problems we looked at earlier. The original lenders were now prepared to: Consider lending on residential investment property as a mainstream activity – the risks involved in a loan going bad were now reduced because vacant possession could be guaranteed under the provisions of the Housing Act.…
DetailsThe original buy-to-let scheme was promoted by eight lenders. Current lenders associated with the original ARLA scheme include Birmingham Midshires, GMAC, Natwest Mortgage Services, Paragon Mortgages and Standard Life Bank. Since 1996 many mainstream lenders have seen the immense potential of buy-to-let. Although not officially part of the original ARLA promoted scheme, they offer a…
DetailsAccording to figures released by The Council of Mortgage Lenders (CML) in early 2013 buy to let lending accounted for 11.5% of all lending in 2012, up from 9.8% in 2011and totalled £16.8 billion. A total of 136,000 loans were advanced in 2012 of which nearly half were for remortgage, bringing the total number of…
DetailsThe competitive nature of buy-to-let, with a large number of lenders offering a large number of flexible schemes, means that almost anyone can now borrow to invest in property. This means that most buy-to-let landlords are just ordinary people who see property as a safe and secure investment, often with a view to investing as…
DetailsOf course it isn’t. But property is a steady and sure “get rich” scheme. Buy to let investors know this: 43.6% expect to hold their properties for at least 10 years 36.9% expect to hold their properties for at least 20 years.
DetailsWhether it will be worth while for you will depend upon what you want to achieve. Most investors buy property for: Income; or Capital appreciation; or A combination of the two. What you want (or need) will determine the type of property you buy and where you buy it. As a general rule, you will…
DetailsAs a general principle higher yielding properties, which are better for income, tend to be cheaper properties, and the highest yielding can be cheap properties in cheap areas. Conversely properties that are more likely to benefit from capital appreciation are higher value properties, and those that are more likely to appreciate are higher value properties…
DetailsMany investors buy the house next door, just because it is the house next door, and with little thought as to whether it is the right property for them. Whether a property is the right one for you or not will depend on your goals, your strategy, and your overall game plan. A recent survey…
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