Mortgage Advice for First Time Buyers, First Time Buyer Mortgages and First Mortgage Advice

Property Buying Guide

Buy to Let Advice: The Hidden Costs of Buy to Let

Not only will the rent need to cover your monthly mortgage repayments, but it will need to be enough for you to cover the costs of buildings insurance and contents insurance, maintenance and redecoration, plus possible void periods when the property is empty or unlet. It is also possible to take out insurance against non-payment of rent, and to cover legal expenses. You will also need to cover ground rent if the property is leasehold, and any service charges if these are applicable. As  a landlord, these are all your responsibility.  There will also be repairs and replacements from time to time.

Your tenants will be responsible for paying Council Tax and utility bills, TV licences, telephone bills and internet connection costs, for instance.  

You will need to have a contingency fund to cover you for periods of time when there are no tenants in the property. Put aside the equivalent of about three months' rental income so that you are able to meet the costs of your mortgage repayments.

A letting agent's fee will need to be paid from the gross rental income. This may be in the region of 10 -15 per cent depending on the level of service you want. You may save money by not using an agent but it would be wise to use one in the first instance if you have no experience of letting a property.
 
More buy to let advice:

Buy to let – for first time buyers and everyone l How much can you borrow? l Buy-to-let mortgages l The tax situation l Finding a suitable property l Your responsibilities as a landlord l Letting agents l Tenants  Furnished and unfurnished properties l Buy-to-let useful websites l Buying Property Abroad 

Useful Links:
 

www.arla.co.uk 
www.cml.org.uk 
www.landlords.org.uk
www.direct.gov.uk
www.rics.org.uk


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Interest rates are low but could rise? Is this a good time to buy?

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Varialbe rate mortgages go up if bank interest rates do. Which is your preference?

Fixed Rate
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Interest only mortgages are cheaper but in the end you don't end up owning the property. Which is better?

Interest Only
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House prices are waivering. Do you think this is a good time to buy?

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Shared equity mortgages allow you to buy a new home with 5% deposit and an equity loan through FirstBuy. What do you think?

Too complicated
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Too risky

Rent to buy allows you to peg a property price, save towards a deposit and pay reduced rent. What do you think?

Works best in a rising market
Too complicated
Good option


 

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