Will you be able to afford your mortgage payments?

As with any purchase, you need to be sure you can afford it before you commit to buying a buy-to-let property. Your lender will help to ensure this by basing their mortgage calculations on a lower figure than the property’s anticipated monthly rental income: lenders usually require that rental income is around 25% to 30% higher than the amount of the monthly mortgage repayment.

You can also fix the rate of your mortgage payments in order to control costs. While this means that you might miss out on any savings from falling interest rates, it also provides the peace of mind that you won’t be affected if rates go up. The is often appreciated by buy-to-let landlords who have tenants on fixed rental rates for six and 12 month periods.

*The information provided should not be taken as financial advice in relation to the UK property market or property investment advice.

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