Struggling to find the best buy-to-let mortgage in York? speak to one of our buy to let mortgage advisers today
The term ‘buy to let‘ generally refers to either the practice of buying a property to be let for profit or to the type of mortgages used to purchase a property for such letting. Many countries, both in the western world and in the developing nations, have seen a surge in the growth of the buy to let property market in the last 2 decades and this has fuelled a growth in amateur landlords and the but to let mortgage providers who are keen to encourage and profit from them in turn. In addition, this growth has generated a lot of commerce in other related sectors such as buy to let insurance.
Buy to Let Deal of the Day 11th Jan 2017
Many countries, both in the western world and in the developing nations, have seen a surge in the growth of the buy to let property market in York the last 2 decades and this has fuelled a growth in amateur landlords looking for quality mortgage advice, this is why mortgage brokers in York who specialise in Buy-to-let are so important and the but to let mortgage providers who are keen to encourage and profit from them in turn. In addition, this growth has generated a lot of commerce in other related sectors such as buy to let insurance.
York Buy to let mortgages have been available in the UK since the mid-nineties and they are specifically designed for investors to borrow money to purchase property in the private rental sector. The amount that a prospective but to let investor can borrow is generally determined by the rental valuation of the property. The annual income for a rented property has to cover a certain percentage of the mortgage repayments, the Association of Residential Letting Agents (ARLA) states that landlords should seek to be able to obtain gross rent returns equivalent to between 130 per cent and 150 per cent of the rental property’s mortgage repayments, this takes into account the surplus rent to cover costs of property maintenance and slack periods when the property may be vacant of tenants.
York Buy To Let Mortgages.
Some buy to let mortgage lenders in York will lend you a maximum sum based on a multiple of your salary (usually a multiple of three) plus a percentage of the forecast rental income on the property. So if your annual salary is said 30,000 Franks and the forecast rental income is 10,000 Franks they will lend you 95,000 Franks. Other mortgages, in addition to factoring in your salary, will include any existing loan commitments you have, and then apply what is known as the ‘deduction rule’. This rule relates to the annual mortgage payments worked out at a pre-set level of interest.
Buy to let mortgage interest rates are generally fairly close to residential mortgage rates but will generally be slightly higher and typically charge higher fees. This is due to the fact that buy to let loans are considered by the financial sector to represent a greater risk than residential owner-occupier mortgages, and they generally are.
The Situation in the UK About Buy To Lets
The buy to let market literally ‘exploded’ in the York around the beginning of the millennium with rising property prices and the increasing availability of buy to let funding fueling a surge in would-be investors trying to cash in on the trend of the market. One reason for their popularity is the tax advantages that are available to the UK buy to let investors. Rental income is treated just like a salary by the Inland Revenue, and is therefore often taxed at 22% or even 40%. However, landlords are allowed to deduct costs from the taxable portion of their rental income, and these costs can include the interest of the buy to let mortgage repayments as well as maintenance costs on the property. These tax incentives made the buy to let market very attractive for both professional investors and amateurs looking to make the most out of their savings.
Would-Be Buy-to-let Investors
The market peaked around 2007 and now the market is saturated in many areas across the country with too many properties available to tenants. While buy to let is generally not a good idea for people who do not possess some extra budget there are a lot of remortgage deals which will fund a deposit for a home. If you are worried about losing money during void periods many companies will provide insurance which can deliver as much as six months mortgage payments in the event of a property in York remaining unoccupied.
You may still be lucky, and find a hotspot but you need to do your homework and the figures correctly. Buy to let trends differ from town to town and literally from street to street. Good advice for potential investors is to visit the local letting agents who should be able to tell you who is renting what at the moment so you can define your target audience. It could be students, young professionals or families, for example. Look for areas that do have a shortage of properties and for indicators that people will move there, such as new business developments.
Buy to let mortgage deals are still rife and the rates are almost as competitive as with conventional deals. The mantra with your buy-to-let must be ‘don’t expect to get rich quickly’. You need to look long-term: an absolute minimum of five years – but probably nearer to ten years.
If you're looking at buying an investmentproperty to help supplement your pension in the future should you be looking for a propertyor real estate investing mentor? It’s an interesting question and I’llgive you my thoughts right after this Hi I’m Andy from monoperty.
Com and on thischannel I share the lessons I have learned as a property investor and landlord and Ialso interview other investors so we can learn from their advice too so if you're new hereconsider subscribing for more videos like this And so if you're a beginner looking to investwhilst you're in full time employment to help supplement your pension in the future I wouldn’tworry about finding a mentor.
What!?! Hear me out There are people who charge thousands or tensof thousands for mentorship programs.
Now I know if you want to go big having amentor can accelerate your progress and help you avoid the pitfalls but I think that’ssomething to think about once your involved and you've got a taste for it and you enjoyit and you want to take it to the next level.
Also I believe there is added value if youhave some experience before seeking a mentorship because you'll have some knowledge that youcan base your questions on and you won’t be spending your money on just learning thebasics which you can get for free online or from books.
Of the 2 million landlords in the UK the majorityof them are what’s known as accidental landlords.
It’s how I started out.
These people find themselves in a situationwhere they are unable to sell a property for various reasons due to an inheritance, movingjobs, or they let their property because they are living away from home for long periodsof time with their work.
Rather than selling they look to let theirproperty through a managing agent so it’s one less thing for them to worry about.
And the majority of people do well from thiswith very little effort, their running costs and overheads are covered each month and astime passes they gain some capital growth.
I know this because as an accidental landlordmyself I’ve been there.
If you are actively looking to invest, youare going to have a better start than the accidental landlords, who are already doingwell, because you have taken the time to learn.
The accidental landlords are making the bestout of what they already have, whereby you, the active investor, will be seeking a certaintype of property in a specific area that is in demand.
Buying your first buy to let can be done withoutany guidance at all, and you will find that you’ll receive some direction from the estateagent, mortgage broker and solicitor during the process anyway.
You already have enough to do on your to dolist; find a deposit, find a mortgage broker, research an area, conduct viewings, crunchthe numbers and find a managing agent ……, so if finding a mentor is on that list, you canscratch it off and have one less thing to do.
Don’t over think it and make it more difficultfor yourself.
I did very little research on my first buyto let, I listened to what the estate agent told me, the mortgage lender was happy tolend to me once they had done their valuation and it worked out well.
Now could I have increased my return on investmentif I had known and done more at the time, well of course I could BUT, at least I madea start.
There is a danger of over thinking the processwhich will delay you from buying your first investment property.
Don’t spend too much time thinking aboutgetting the biggest returns, property investing is NOT a get rich quick scheme.
It’s a long term game, but you have to makea start! Making a start now on a property that producesa positive net cashflow each month, is better than waiting months or years for a propertythat produces a slightly higher net cashflow.
We all know the best way to learn is by doing.
So if you're in a position to buy, get started! Now let me tell you, the fact that you arewatching this video, and if you’ve seen my Getting Started Playlist which I will linkin the description and throw a card up on the screen just in case you haven't, you willalready be way ahead of other people who are considering investing, and those falling intoinvesting as an accidental landlord, in terms of preparation and finding a good propertythat’s in demand on the rental market.
So don’t think you need to find yourselfa mentor.
When starting out, spend your money on aninvestment property, NOT a mentor.
You’ve got this! You can do it! This weeks question comes from Michael Collinson:”“Well done with the new look I like it” Thank you very much Michael.
“What video editing software do you use? I’ve just started using Power Director 14.
Do you use a green screen to get yourselfshowing in front of the background? I use a Mac and the first video editing software thatI used was iMovie the first 25 or so videos I released were edited on iMovie I then decidedto upgrade to Final Cut Pro (or FCPX) Final Cut Pro 10 and I love it it’s brilliantthere is so much more you can do with that compared to iMovie and I’m learning allthe time everytime I create a video I try and learn something new try and add somethingso we will see how that goes.
Yes I use a green screen and this is somethingelse I’m learning all the time you have to get the lights right the camera settingsright it can be a pain at times but I wanted to use it because I don’t have a plain wallin my house every walls got a picture, a photo, a mirror, or a clock on it and I didn’t wantanything in the background that would distract the viewer so that’s the main reason forusing green screen but it’s also good because I can throw up graphics or other bits of informationwhile I’m still doing the talking head stuff in the hope that it will just add to the videoexperience so yep that’s why.
I buy all my equipment on Amazon because Ifind their prices are very competitive and their Prime service for next day deliveryis fantastic.
I have upgraded some kit over time I’vegot a new camera stand a new green screen some other bits and pieces and I’ll linkto everything I’ve purchased and would recommend down in the description so that you can checkit out for yourself.
Thanks for your question Michael and keepup the great work on your channel I’ll link to it down in the description so that otherpeople can visit it and if you have a question that you would like me to answer you can askme in the comment section below or send me a message on my social media platforms orthrough my blog.
Please like and share this video if you foundit useful and if it’s your first time here definitely subscribe so you won’t miss anyof my future videos which will all be geared towards helping you start or improve yourproperty business.
Thank you so much for watching and I’llsee you in the next video.
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10 year fixed buy to let mortgage
How do you really start a buy to let propertyinvestment business in today's market? Let me give you the ten things I think you needto consider.
Hi there, my name's Tony Law from your Your First Four Houses.
My channel'sall about helping you get to investment property number four as quickly and as painlessly aspossible.
Let me give you these ten things, I feel, you need to have at the forefrontof your mind in order to be successful in this property investing world of ours.
Thevery first one is to, you need to understand your financial goals.
Let me give you a specificway you should do this.
You basically need to understand how much money you're spendingevery single month.
Download three months worth of bank statements,work out what you're actually spending every single month, and that is the target thatyou need to hit, essentially, to be financially free.
The sooner you hit that target, thesooner you can basically give up the day job, essentially, and focus far, far more of yourenergy on building your property portfolio.
When you know what that number actually is.
Now I run a paperless office, largely, but when you know what that number is I needyou to do something vert manual for me.
I need you to go and draw up one of these, it'seffectively the kind of thing that you'd see if you were trying to raise finance for aparticular project.
At the top of it, you're going to have thattarget, that number that you've just worked out.
Running up the side, you're going tohave integers at about, say, 500 pounds, little marks going up the side.
Whenever you do adeal that puts money in your pocket you need to colour that in.
It may sound primitivebut it's incredibly powerful.
I've recommended this to a lot of people that use it and theyfind it really, really helps them keep focused.
Moving on quickly to point number two, youneed to work out how much time you can give to this.
Really, if you're working full-time,that doesn't mean that you haven't got time to do this.
You've got your lunch times, you'vegot your evenings, and you've usually got your weekends.
How much time can you give to this? The moretime you can give, the better and faster results you're going to achieve.
Next number three,I need you to start building your education.
Now, there's a number of ways that you cando this.
You can look at podcasts, you can get books, webinars, you can employ a coach,mentor, you can look at some courses.
The sooner that you can build your knowledge,the sooner you're going to better achieve bigger and better deals.
One of the specificthings I'd like you to consider if maybe this is an area of weakness for you, is to maybeget some training on negotiation because this is a real key thing that will really helpyou when you're speaking to agents or when you're speaking specifically to seller.
Pleaselook into that.
Number four, the sooner that you can focuson picking your strategy, the sooner you're going to be successful.
Now, I like peopleto focus on maybe one or two core strategies.
Rather than having more of a shotgun approach,it's better to be more laser focused.
See if you can work out which one or two corestrategies would work really well for you and start focusing on those.
Number five,research the different areas and work out where you should be actually buying.
Now,I did a video recently on this that basically gives you a really detailed explanation onhow to work out supply and demand in any area within about 60 seconds.
You need to lookat other things.
In the area that you're actually looking at,what's the situation with regards to perhaps new employment? What about transport links?Are they being improved, specifically? What about population? Is there an increase ordecline that you've noticed? All of these things can really dictate the better areasto actually invest.
Point number six, go and see a mortgage broker.
You need to find outwhat kind of mortgages you can get.
Again, I did another video here on how to actuallyimprove your credit rating.
I would strongly suggest that you watch that.
That will giveyou some real key tips to improve your credit rating, which is going to mean you'll getbetter access to better mortgages at lower rates.
Number seven, you need to learn how to findgreat deals.
Now, I know that this is a massive topic and we can go into this in a lot moredetail.
Essentially, you do need to understand how to find better deals.
You need to learn,very specifically, what makes a good deal for you.
Honestly, this is a real key thing.
You may have no funds at all but if you can find and negotiate really good deals, honestly,you'll never have problem raising the funds.
I'll invest with you if you can find reallygood deals.
In essence, there's lots of people around you that will be delighted to put moneyinto the deals if you can find them.
Next, start building connexions.
When I say that,I'm talking about connexions with agents.
I'm talking about connexions with deal sources.
I'm talking about connexions with people who can help you fund your next deal.
The sooner you start building genuine, sincere,honest, full-on relationships, friendships with people, honestly, the sooner you're goingto actually be successful in this property world of ours.
Number nine is simply exitstrategy.
So many people I talk to have no clear exit strategy.
They don't really understandtheir exit strategy at all.
I always encourage people to consider two exit strategies.
Iwould love you to do the same.
Even before you buy that very first property, just consider,are you holding this for the long term? Is this a flip that you want to churn to getthe money out very, very quickly? If things don't work out, is there a second way outfor you? Number ten, this is the big one.
This is whereso many people stumble and that is, you have to take action.
Now I know that seems bleedinglyobvious but so many people, they build their knowledge, they learn, learn, learn, but theystop at the action taking point.
Frankly, I don't really understand this if I'm beingtruthful with you.
I think it's largely down to fear quite often.
Quite often, perhaps,having somebody behind you that's maybe got their hand in the small of your back and justpushing you forwards or just giving you a bit of a shove to actually take that actionmight be really beneficial for you.
Let me ask you a question.
How many properties haveyou actually been out to see this week or this month? If they answer is none, then you're not takingany action, I would respectfully suggest.
You need to take that action.
I really hopethat you found that helpful.
I just want people to be successful in this property world ofours and to get to that magical place where the income that's coming in surpasses themoney that's going out.
If this sort of stuff really helps you, I am absolutely over themoon.
My name is Tony Law from Your First Four Houses.
I really hope you found thisone helpful.
I look forward to seeing you in the next video.
Before I go, please ifyou can take a moment to subscribe to my YouTube channel, if you haven't already done so.
Thatwould be absolutely brilliant.
If Facebook's more of your kind of thing, please like myFacebook page.
Thanks ever so much.
I look forward to seeing you in the next video.