Mortgages

Property Investment

Over the last few years property investment has taken a different turn and with many more lenders offering buy to let mortgage products this market has grown considerably with many private investors investing in the property market.

Lenders generally require a 25% deposit and for many lenders their criteria is to only look at the rental that the property will achieve when looking to approve a mortgage application, although there are still some lenders that require you to provide them with a set of accounts to prove you earn enough to take on an additional mortgage.

You may want to buy properties at auction and some providers will offer you a mortgage in principle before the date of the auction as you will need to pay the entire balance to the auction house within 28 days.

Most buy to let mortgages are taken out as an interest only option as this is cheaper to fund and allows you to buy more with any future capital. You could then, in time, remortgage the properties and buy further homes.

With the recent downturn in property values in the UK the quick profits to be made out of property have gone and an investor should now look at making his or her profit at the time of purchase. How you ask? Well with the current stagnation in the property market an investor should look to purchase property at lower than its current value.

An investor is normally in a very good position with no chain and funding already in place. Present yields depending on geographical location in the UK should be between 4 - 6% this can be higher in areas where housing prices are cheaper though.

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