Buy to let purchase

Gain confidence in buying property for long term income

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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Whether you are buying your first buy-to-let or your twentieth, the principles are roughly the same

However, your first few are the ones you need the most help with. Buying property to let is one of the most popular investment opportunities today, especially due to the steady, passive income it can generate for its owner.

With the help of our seasoned mortgage experts at Wise, we prepared a comprehensive guide, which will help you carry out the process without unnecessary stress.

How will you fund it?

At this point, if you are considering your first buy-to-let purchase, you have likely bought a property before, but are also conscious that a lot has changed since your previous purchase.

However, you probably remember having to put down a deposit, unless you were buying pre-2008, when you could get 100% mortgages like they were going out of fashion. When buying a buy-to-let, you generally require a higher deposit than a personal residence. The deposit usually needs a minimum of 20% of the purchase price.

Funding that 20% deposit can be done in various ways. Some people find an excellent property investment and decide to go into it with a friend or family member who has more cash, some will have been amassing savings that they want to put to work, although many people release funds from an existing property they own, too. We have seen many deposits funded from other limited companies, which can be done as a director’s loan.

What do you want?

When buying a buy-to-let, you’re likely in the investment stage, looking for returns on your hard-earned. You aspire to have more in life, but what does “more” mean, and what does it look like? Those investing in buy-to-lets have different plans, goals, motivations, and visions. Do you know what yours is?

When you talk to an experienced buy-to-let mortgage advisor, you’ll often be asked questions to uncover your motivation, which in turn will lead to a conversation about

  • Whether you need a buy-to-let lender who allows you to borrow more in the future.
  • If you need a lender that allows you to buy a property that needs a heavy or light refurbishment before it’s let.
  • If you should be getting tax advice from a tax adviser to explore ways to reduce your liability.
  • What the market is like, and whether you should be aiming towards a larger deposit for a better rate and better cash flow.
  • Whether you need a specialist mortgage like a limited company mortgage or whether you need a lender that permits short-term lets, holiday lets, or multiple tenancies (HMO).
  • It’s much easier to buy with a smaller deposit if you are prepared to fix your rate for a medium to long period.
  • As a first-time landlord, it’s simpler to buy a rental property that is aimed at the standard rental market.
  • Get to know the area you want to invest in, and go and speak to a local agent, to find out what is in high demand and what monthly rental prices are.

Gain financial freedom today with help from Wise

If you would like to have a fee-free no-obligation chat with us, contact Wise, and a friendly advisor will discuss your the most suitable buy to let options for you.